A Keylogger is a type of software that monitors the keystrokes made by users. This is a common cyber threat not restricted only to the crypto space. It is currently seen as one of the oldest ways that hackers have to record details inputted by users.
With how valuable the crypto space is, unscrupulous elements use keyloggers to gain access to their victims' crypto holdings. A hacker may input keyloggers into the devices of their unwitting victims to steal their personal or financial details like their crypto wallet seed phrase, crypto exchange log-in details, and so on.
Keyloggers may have been abused by hackers, but they also have their legitimate purposes. Some companies use this monitoring software to checkmate the activities of their employees, heighten user experience or even troubleshoot. Intelligence agencies may opt for this type of software to monitor the activities of their targets.
When a Keylogger is used, it copies the information that is inputted by the victim and transmits the data to the third party, which may be a hacker. In the case of cryptocurrencies, keyloggers capture the keyboard strokes which may include the log-in details to a crypto exchange.
The efficacy of a Keylogger is dependent on its type. For the basic ones, they collect the details that are inputted in one app or website. Advanced types collect information concerning everything that is done on the device, not minding the app or websites. Sometimes, it may also record data that is copied and pasted by the user.
Hackers access the collected data through email or may code the software to upload it to websites or servers. This type of software can infect a device through multiple means. It can be done physically, or when a person connects their device to a public WiFi.
Keyloggers can get into a device by downloading an app infected with malware or using a website that has the code.