Keyloggers record anything that you type and where you type it on your PC in a log and transfer those logs to the person – better thief – who did install the keylogger on your computer. He can then find out all the urls you visited, the passwords that you entered on those websites and what you did there as well.
The chance that your home system is infected by a keylogger is rather slim especially if you are a careful user with some basic computer security knowledge. The real danger lies out there in the real world and they go by the name public computers. There is no way normally that you can check if a public computer is running a keylogger in the background or another type of nasty virus or trojan that records your computer activity.
Safekeys is a small software that does not need to be installed which makes it an ideal application for such situations. It displays a virtual keyboard on your screen and you can use the mouse to type the asterisked password in. It supports all the chars that are normally located on a real keyboard.

The so created password is displayed in the Safekeys software and you have to mark and drag and drop it to the password field on the website or application that you want to use.
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How to defeat most keyloggers on public computers
Monitor Computer Activity
Block Mouse And Computer Keyboard On Hotkey
Increase USB Security With USB Cop
Learn to type faster
Windows has a built in “on-screen keyboard”
Start > programs > accessories> accessibility > On-screen keyboard
Thanks Martin for pointing to this software, It looks indeed very useful.
@MiGs:
I’ve just tried the Windows On-screen keyboard.
With few lines of Python code I can easily read all the keystrokes (the app. is just simulating normal keystrokes).
I think It’s scary that it’s so easy to write a keylogger on Windows. For my part I’m now careful not to type “in the clear” my important login(s)/pass(s) on a computer which is not mine.
On my PCs (where I can install software) I’m using Key Scrambler to scramble the keystrokes
https://addons.mozilla.org/en-US/firefox/addon/3383
Yaiks!
Thanks for pointing that out francois!
It seems that there is really a need for a third party program.
Thanks Martin for such a nice piece of software.I was really thinking for such software so that i can check my email at my college lab without being spied.
I think it is also possible that you type random alphabets between your password and then delete them by means of backspace.As a result the keylogger will detect only one press of backspace and indeed you will have deleted alot of characters.What you think?
I also want to know what other tricks one can deploy at public Pc’s besides other than portable apps such as to increase the bandwidth and to avoid the viruses especially NEWFOLDER.EXE & RAVMON.EXE which spread through USB drives.
@francois:Very nice addon ff recommended.It will be perfect companion for a portable firefox.