Shell scrap file; reportedly used to send "password stealers"
Excel and Word create a SHS file on the desktop when a piece of text or graphic is dragged into documents or to the desktop itself. An SHS file is a Windows Object Linking Embedded (OLE) scrap file and can also act as a container for executable code. If an SHS file contains malicious coding, it can make it possible for an intruder to steal passwords or do other damage.
Learn more about SHS files:
Microsoft has more information about SHS files.
Search for answers to SHS-related questions at IT Knowledge Exchange.