PIFTS
Public Internet and File Tracking System
It goes offshore because there's no law forbidding sending it to foreign governments. If governments want to spy on their own citizens, it is normal for them to have foreigners do it in order to get around normal restrictions about spying on their own people.
This is why there have been reports of the file sending data to Africa.
There have also been reports of it accessing your internet history.
If you find it, DELETE IT.
Source: Norton community forums.
All threads asking about pifts.exe are immediately erased from the symantec forums and the user is instantly banned. All attempts to contact technical support result in customers being put on hold indefinitely.
Norton Antivirus copies PIFTS.EXE on your system via LiveUpdate and from this point on
CANNOT BE CONSIDERED SAFE ANYMORE. Immediate removal of all Norton products is strongly advised if you care about your privacy.
I've quickly gathered some links to this whole conundrum on my blog:
What the hell is PIFTS.EXE? Weblog Of The Everyday
Spread the word.