A keylogger might be a hardware or software.Hardware Keylogger - A hardware keylogger is something like normal USB drive that is plugged between keyboard plug and USB socket. It has an inbuilt memory that records all the keystrokes. The obvious limitation of hardware keyloggers is that there physical presence can be easily detected.
Software Keylogger - A software keylogger can be of futher two types.
Local Keylogger- A local keylogger is a software that is installed on a computer,records the keystrokes typed and save them into a text file on local machine. An attacker needs to have a physical access to victim's computer to steal data through local keyloggers.
Remote Keylogger- A remote keylogger is exactly same as local keylogger. But one addtional thing,it does that is it keep sending the textfiles in which data has been recorded to a remote location as specified the user. The remote location can be your email ID,ftp account etc.So Attacker doesn't need to have physical access on victim's computer.
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