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What Is Keystroke Logging?

Whether you think your employees are slacking or you just want to add a little more security to your business's assets, there are things to keep in mind when you're considering keystroke logging software.

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Written by: Andrew Martins, Senior AnalystUpdated Apr 07, 2025
Gretchen Grunburg,Senior Editor
Business.com earns commissions from some listed providers. Editorial Guidelines.
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As a small business owner, you want to ensure you’re getting the most productivity out of your employees. With more and more of today’s work being done digitally, the threat of constant distractions looms large over the workday. You can closely monitor your employees’ online behavior using keystroke loggers and other types of employee monitoring software, but some risks are involved.

Editor’s note: Looking for the right employee monitoring software for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs.

What is keystroke logging?

With employee monitoring software, employers can access the necessary tools to keep tabs on employee productivity levels during business hours. One such tool many vendors offer is keystroke logging software. Also known as a “keylogger” or “keystroke logger,” this type of employee monitoring software keeps a by-the-moment record of each key an employee presses on their keyboard.

Though these programs are generally offered as software that’s difficult for employees to detect, there are also physical keystroke loggers.

How does keystroke logging work?

At a fundamental level, keystroke loggers do what the name suggests: They log every keystroke made on the monitored keyboard and every other action taken on the monitored device. Generally, these programs make their way onto computers in one of two ways: Either the employer purposely installs the software on a work machine before issuing it to an employee, or it is accidentally downloaded as a malicious program through an infected file download.

Keystroke loggers that are surreptitiously installed on a system are among the most common types of spyware used by malicious actors on the internet. The ability to track a user’s login information, including their passwords, for various sites and pick up other sensitive data makes keylogging malware an extremely popular tool among identity thieves.

A keylogger can also collect data through clipboard logging, screen logging and internet activity tracking.

Types of keystroke loggers

There are two types of keystroke loggers on the market: software-based keystroke loggers and hardware keystroke loggers.

  • Software keylogger: Once downloaded onto a computer, either maliciously or through an official action by an employer, this digital program is, by design, hard to detect and can record every keystroke and action in a log file.
  • Hardware keylogger: Unlike their digital counterparts, hardware keyloggers are more easily detected, since they are physical items that usually plug directly into the monitored machine. Some look like USB flash drives, while others are installed between the keyboard USB cable and the computer’s USB port.
TipBottom line
If you're concerned about external threats using keystroke logging maliciously against your employees, it's crucial to create and maintain a cybersecurity plan. This is the best way to safeguard sensitive business information and protect employees from cyberattacks.

Why do some businesses use keystroke logging?

Although some people view keystroke logging as invasive, there are legitimate business reasons for why an employer might want to use it.

To enhance productivity

With many employees now working remotely, it’s understandable that a small business owner would want to take measures such as keystroke logging. Internet distractions are significantly harder to clamp down on when your workforce is scattered and operating in the privacy of their own homes. Without proper oversight, production may slow down, deadlines could be missed, and customers’ confidence in your company’s reliability might diminish.

“For startups and small business owners in particular, the success of their company relies on determining and fine-tuning their productivity and revenue,” Omkar Dharmapuri, an IT professional and devops engineer with VentraGate, told us. “Lazy, inactive employees might cause the business to lose money — an issue with larger consequences in smaller businesses than larger ones.”

To identify inefficiencies and pain points 

In addition to monitoring how employees spend their day, keystroke logging software can affect other parts of a business’s operations. When implemented properly, a keylogger can help you streamline your business processes by collecting data on current inefficiencies and identifying pain points that drag down employee engagement.

According to Dharmapuri, some companies do this by subverting the covert nature of keylogging. By letting employees know they’re being monitored, you can encourage them to become better, more productive workers.

“Some businesses opt to emphasize the fact that they’re being monitored, which can have a boosting effect on employee performance,” Dharmapuri said. “You can even go so far as to attach a reward system to it, using positive reinforcement to reward employees.”

To maintain company security

Tracking employee activity, like keystrokes, can help you maintain overall company security. For example, keystroke logging can help detect unauthorized access, insider threats and potential data breaches. It allows businesses to track login attempts, flag suspicious behavior and ensure compliance with security policies. If an employee has nefarious intentions, you will have the chance to address them before they put your company at risk. Since keystroke logging can provide forensic evidence in the event of a security incident, it helps IT teams respond quickly. 

It’s important to note that keylogging can have the opposite effect on data security if used incorrectly. Companies must implement it ethically, balancing security needs with employee privacy.

What are the risks associated with keystroke loggers?

While keyloggers can benefit a business, there are inherent risks with employee monitoring, depending on how you use such technology. 

Decreased employee trust and satisfaction

One of the most significant sticking points for privacy advocates and most employees working under the electric eye of a keylogger is that it’s indiscriminate. Built specifically to capture everything, keyloggers are “risky,” according to Hubstaff CEO and co-founder Jared Brown.

“Anyone who reviews the data can read any passwords the employee enters,” he said. “Employees don’t always know when their keystrokes are tracked or not. This creates tension between employees and employers.”

This issue further highlights the need to be transparent about your reasons for implementing a keystroke logger. The problems will compound if employees discover they’ve been monitored without their knowledge. While many employee monitoring software providers include a keylogger, Brown said his company refuses to do so, instead opting to use data such as activity rates and other tracking efforts.

Increased data security risk and vulnerability

Another risky area is where the logs are kept and how secure that data is. Because these keystroke logs contain employees’ sensitive information, they’re a target for attack by hackers. Cybercriminals can use the information for their own ends or sell it to an outside party.

TipBottom line
If you are concerned with the potential security risks associated with employee monitoring, check out our list of the best employee monitoring software. Representatives from these vendors will be able to review your security concerns and provide insights on risk mitigation.

What are some keystroke logging tools?

Once you’ve considered your options, checked local legislation on the use of keyloggers, and crafted a clear company policy on the practice, you’re ready to look for a monitoring program. There are some employee monitoring software solutions that include keyloggers and are worth checking out.

SentryPC

If you run a very small operation, you’ll want to keep SentryPC in mind. With affordable service plans and an intuitive interface, SentryPC is a cloud-based solution that can monitor both Mac and PC users. Recording keystrokes is just one of the ways it keeps tabs on your employees, and it does so in real time. It also can filter certain web content, track a device’s IP address, and detect when a portable drive is inserted into the device. Read our SentryPC review to learn more about the software’s features. 

Teramind

Poised as more enterprise-facing employee monitoring software, Teramind offers a range of monitoring methods. Through its real-time user activity monitoring, Teramind can keep track of keystrokes, as well as at least 12 system objects, in real time. Those other trackable inputs include webpages, applications, emails, console commands, file transfers, instant messages, social media and on-screen content. Check out our review of Teramind to see what other security features the software offers.

InterGuard

Another one of our best picks, InterGuard, is ideal monitoring software for tracking remote employee activity. In addition to keystroke logging, it has monitoring features such as screen recording and the ability to take snapshots of employees’ screens. You can view various dashboards, depending on the information you need to access. We also like that the software offers alerts and reporting so you can stay on top of employee activity as it occurs. Read our InterGuard review to gain more in-depth knowledge of the software. 

Skye Schooley contributed to this article. Source interviews were conducted for a previous version of this article.

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Written by: Andrew Martins, Senior Analyst
Andrew Martins is an award-winning expert in business and economics, known for his meticulous analysis of industry trends and his deep understanding of small business dynamics. With years of hands-on experience and on-the-ground reporting, Martins has crafted invaluable guides about essential topics in small business technology and finance. At business.com, Martins covers tech concepts like big data, acceptable use and keystroke logging, along with finance subjects like tax audits and business credit cards. In recent years, Martins has turned his attention to examining the impact of major events such as the 2020 presidential election and the COVID-19 pandemic on small businesses. Armed with a bachelor's degree in communication, his work has been featured on respected financial platforms like Investopedia, The Balance and LowerMyBills, as well as technology outlet Lifewire, and the pages of the New York Daily News.
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