I'm no guru but the only widespread use of spy cameras for password theft I've heard of is false covers on ATMs to catch PIN codes, which makes sense as an ATM

I'm no guru but the only widespread use of spy cameras for password theft I've heard of is false covers on ATMs to catch PIN codes, which makes sense as an ATM eliminates a lot of variables. (angle camera needs to be at, number/size/position of keys on keyboard, required resolution/range, increased number of victims, etc). In the wild I imagine it's one of those things that's simple in concept but difficult in execution due to all the edge cases. Even if you get 80% of a password, if you're not at the perfect angle to catch those last few key-strokes you haven't accomplished much.