Okay, this is a little late because I was having trouble with the concept.
Here is the Dodomeki, the Hundred Eyed Demon.
She was once human, but her constant stealing of money cursed her and turned her into a demon. Why the eyes? It's actually a play on words, where the copper coin of Edo period Japan was called dousen, but was nicknamed choumoku, or "bird's eye", because it's unique shape reminded people of a bird's eyes. These demons are also long armed because the slang term for a thief was someone with long arms.
There is actually an interesting legend about this demon and more you can read about it http://yokai.com/dodomeki/ here.