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These are usually anti-spyware or security software applications that use various forms of deception and/or unethical means or show a history of negligent false positives to goad the end user to make a purchase.
In some cases these applications maybe downloaded with some form of unwanted software at which point the rogue application is offered to the customer as a way to remove the unwanted software.
Like most other rogue antispyware programs, PSGuard is often distributed through an exploit or trojan. Once installed it will provide the infected computer with false reporting of various spyware programs.