The concept is that you can algorithmically figure out what the person entered as a passcode with high accuracy for numeric codes and impressive accuracy for alphanumeric passcodes. The question is exactly how much of a threat does this thing represent, since you need a fairly clear view of the device that's being used.
surveillance
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IIRC, a comment suggested that one way to fight this is to randomize the keyboard before and after every key press by the legitimate user. I wrote a program that did this ages ago in an early dialect of Visual Basic, I did two versions that randomized a 10-key pad and another that did a full alphanumeric keyboard. Another comment said that this randomization was something that Europe has been doing for ages, so I'd expect it to find its way over here.
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