Keylogger — an invisible threat to your wallet and data

Protection Guide | 2025 | Reading Time: 6 minutes

Key Takeaways

• Keylogger is a program or device that records every keystroke on your keyboard.
• There are two types: hardware devices and malicious software, each with its own attack scheme.
• Cryptocurrency wallet owners are at the highest risk — stolen keys mean the final loss of funds.
• Comprehensive protection includes technical measures, behavioral habits, and constant vigilance.

Introduction: why keyloggers are a serious problem

A keylogger is not just a tool for IT professionals — it is a weapon used by cybercriminals targeting your financial data. It works simply: any character entered on the keyboard — passwords, private keys, authentication codes — is silently recorded and sent to malicious actors.

Sound like science fiction? In reality, it happens daily. From bank accounts to private wallet keys — no one is protected if a keylogger has settled on your device.

The more dangerous situation for crypto users: a keylogger means direct access to your funds. Unlike traditional banking, where transactions can be canceled, lost tokens and coins are gone forever.

When keyloggers are legally used

Not all keyboard logging is criminal. Here are some legitimate uses:

( Family safety Parents monitor their children’s internet activity, tracking visited sites and sent messages.

) Corporate oversight Companies monitor employee productivity and protect confidential data — but only with informed consent and in accordance with labor laws.

Data recovery

Researchers log interactions with computers to analyze typing speed, writing style, and cognitive processes.

However, these scenarios are exceptions. The vast majority of cases are crimes.

Keylogger attacks: what criminals target

When a keylogger is malicious, the targets include:

• Bank login credentials and passwords
• Credit card data and payment details
• Private keys and seed phrases of crypto wallets
• Two-factor authentication codes and backup access codes
• Corporate passwords and confidential correspondence

Stolen information is then sold on dark web markets or used for direct theft. For crypto traders and DeFi users, this risk is critical: one exposed private key means losing all assets without recovery options.

Two types of enemies: hardware and software loggers

Hardware keylogger is a physical threat

These devices are installed physically:

• Between the keyboard and computer — tiny gadgets, almost invisible
• Built into the keyboard itself or USB cable
• At the firmware level — capturing keystrokes from the moment the PC is turned on
• In wireless adapters — intercepting Bluetooth signals

Advantage for hackers: antivirus software does not detect them. Advantage for users: they can be physically identified during inspection.

It is especially risky to enter passwords on shared computers in libraries, offices, and internet cafes.

Software keylogger is an invisible enemy

When a keylogger is malicious software, it operates from within the system:

• Kernel-based loggers — work at a deep OS level, almost undetectable
• API interceptors — catch keystrokes through Windows system functions
• Form snapshots — record data from web forms before submission
• Clipboard monitors — see copied passwords and codes
• Screenshots — photograph the entire screen, including data entry
• JavaScript traps — embedded in hacked websites

They spread via phishing, malicious links, infected files, and compromised browser extensions.

How to detect a logger on your device

Step 1: Check active processes

Open Task Manager ###Windows### or activity monitor (Mac) and look for unknown programs. If you don’t recognize the name — Google it before deleting.

( Step 2: Analyze network activity A keylogger often involves constant data transmission to remote servers. Use network traffic monitors )Wireshark### to identify suspicious connections.

( Step 3: Run specialized scanners

• Malwarebytes — specializes in spyware
• Bitdefender — comprehensive protection
• Norton — includes anti-logger tools

) Step 4: Check connections and ports For hardware loggers: inspect USB ports, keyboard, and cables for strange devices.

Step 5: The nuclear option

If suspicion persists, completely reinstall the operating system. First, back up important data on a clean device.

How to stay protected

Against physical devices

• Check USB ports before using unfamiliar computers
• Never enter passwords and private keys on public PCs
• Use on-screen keyboard for critical data
• In high-risk situations, use encrypted input devices

Against software loggers

• Updates — install OS and application patches immediately
• Caution — avoid clicking links in emails, even if they appear to come from trusted contacts
• Two-factor authentication — enable everywhere possible
• Antivirus — keep your scanning software up to date
• Secure browser — use modern browsers with anti-phishing features
• Regular checks — periodically review installed programs and remove unfamiliar ones

Special threat to cryptocurrency holders

Traders, DeFi users, and NFT investors are prime targets for keyloggers. Here’s why:

• Private keys are all a hacker needs
• Transactions are irreversible — stolen crypto cannot be recovered
• Exchanges often use web interfaces vulnerable to logging
• Backup codes for 2FA can also be stolen

Under attack are:

• Private keys and seed phrases
• Exchange account passwords
• Two-factor recovery codes
• Browser extensions for managing crypto wallets

Minimum protection for crypto users:

• Use hardware wallets ###Ledger, Trezor### — they are protected against logging
• Use encrypted password managers
• Never enter private keys into the browser
• Keep seed phrases only in physical form, stored securely
• Avoid logging into crypto accounts from unsecured devices

Conclusion

Keyloggers are a real threat, but not inevitable. Understanding how these tools work and how they spread is already half the battle won. The second half is developing habits of vigilance: regular checks, up-to-date software, hardware wallets for crypto, and healthy skepticism of suspicious links.

Your data has value. Act as if it truly does.