Can a laser damage the camera image sensor?

Yes, lasers do cause damage. Don't directly expose your camera lens to laser beams. They may damage the image sensor and cause the camera to malfunction. 

If you're in an environment with a laser display, whether indoor or outdoor, with direct or indirect exposure (bouncing laser beams of a reflective object), the damage to the camera CMOS sensor is still severe.

This damage can also occur if your camera is off but not covered by the lens cap. Therefore, take the necessary precautions and ensure your lens cap is on when an active laser is nearby.