What is a Keylogger: It's a program that that
has the capability to record every keystroke you make.
Official definition:
A keylogger is a type of surveillance software (considered to
be either software or spyware) that has the capability to record
every keystroke you make to a log file (usually encrypted).
A keylogger recorder can record instant messages, e-mail, and
any information you type at any time using your keyboard.
Keyloggers, as a surveillance tool, are often used by employers
to ensure employees use work computers for business purposes
only. Unfortunately, keyloggers can also be embedded in spyware
allowing your information to be transmitted to an unknown third
party.
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