Augmented reality (AR) technology is one of the rapidly growing solutions that change the way people interact with the digital space (Kidd and Crompton in Mobile learning design. Springer, Singapore, pp. 97–108, 2016). People have raised questions concerning security and privacy stakes as it become more applied in various areas such as gaming, health, and education. It is in the context of keypad input interception in an augmented reality setting, that the following review of the literature has been conducted. To conduct the review, previous works on subjects related to the topic will be reviewed, with emphasis on the limitations of such studies, which will help build the need for the current study. We will also discuss some ethical questions concerning security breach investigation. In this study, it was considered convenient to transform from simple data gathering to live demonstrations and simulations to evaluate the possibility of the interception of a keypad input within an AR context. This study also uses the Python script and Mediapipe along with OpenCV for the application of AR interaction emulation. The researcher was actively operating with a live subject, moving through a range of positions of the user, different lighting conditions and kinds of input which include keypad input and gesture recognition. Looking at the actual and real typing behaviour, one may identify the real-time feasibility of the interception of keypad inputs in an AR environment. Based on the above observations, it is evident that hand position smoothing has a considerable impact on tracking stability, thereby improving the dependability of intercepting AR keypad input. Further, front-facing positions present certain benefits to AR technology since placement in the AR environment is a significant determinant of its feasibility. Adaptive remedies are needed when lighting conditions, which are often overlooked, have a significant influence on tracking accuracy. Various input approaches are reviewed and analysed in this paper with the purpose of gaining information concerning the possibility of incorporating customised input mechanisms in augmented reality. Therefore, based on the analysis of this paper, the interception of keypad inputs within AR environments is accurate and fast. This simulation-based study offers practical insights into AR keypad input interception and the dynamic world of AR interactions. Real-time observations provide glimpses into keypad input interceptions, advocating for the fine-tuning of AR interactions for optimum usability and effectiveness. As AR technology continues to transform across industries, this study prioritises the significance of optimising user interactions and security measures within the growing digital landscape.