Honeypots are security resources that are designed to be probed, attacked, or compromised in order to detect unauthorized access. They work by providing resources that are expected to receive no traffic, so any traffic received is likely unauthorized. There are different types of honeypots used for law enforcement or research purposes. Honeypots excel at detection of attacks or unauthorized access due to advantages like reducing false positives and negatives and providing valuable data, but they also have disadvantages like narrow visibility and risks if used improperly. The level of interaction a honeypot allows determines how much functionality and information it can provide, with higher interaction providing more insight but also more complexity and risk.