An Introduction to KeyLogger:

Many computer users know about Spyware because they would have been a victim of one type of spyware or another. Spyware is a definite term specific for applications and software that log information about a user's online behavior and report back to the software's creator. This may affect programs range from unwanted pop-up ads, browser hijacking and more dangerous security crack.

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This may include the theft of personal information, keystroke logging, changing dialup ISP numbers to expensive toll numbers, and installing backdoors on a system that leave it open for hackers.