This type of trojan steals passwords and other sensitive information. It may also secretly install other malicious programs.
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A Trojan-PSW is very similar to a Trojan-Spy, but is geared mainly towards stealing account log-in details, including passwords (the PSW stands for password stealer). In addition, some Trojan-PSW may also include spying and data-stealing routines.
To perform its password-stealing routine, a Trojan-PSW will usually drop a keylogging component. Such components stays active in Windows memory and starts keylogging (recording keystrokes) when a user is asked to input a log-in ID and a password. Stolen log-ins and passwords can allow an attacker to read a user's e-mail on public and corporate mail servers, as well as giving access to more sensitive material, such as online banking accounts.
As of March 2010, the naming convention 'Trojan-PSW' has been updated to 'Trojan-PWS' to make identification easier for users and to ensure naming practices are in line with current industry standards.