The Nirvana Sutra lists four types of demon: i) greed, anger and delusion; ii) the five skandas, or obstructions caused by physical and mental functions; iii) death; iv) the demon of the Sixth Heaven (Realm of Desire).
The Self-Nature has been described in Mahayana sutras as a house full of gold and jewelry. To preserve the riches, i.e., to keep the mind calm, empty and still, we should shut the doors to the three thieves of greed, anger and delusion. Letting the mind wander opens the house to "demons," that is, hallucinations and harm. Thus, Zen practitioners are taught that, while in meditation, "Encountering demons, kill the demons, encountering Buddhas, kill the Buddhas." Both demons and Buddhas are mind-made, Mind-Only.
For a detailed discussion of demons, see Master Thich Thien Tam, Buddhism of Wisdom and' Faith, sect. 51.