How?
This document explains how WizCrypt works.
Encryption
When WizCrypt is used to encrypt a file, the following transformation happens:

Decryption
During decryption, the following steps happen:
- MD5 hash of the user supplied password is computed.
- This hash is compared with the first 16 bytes of the encrypted file.
- If both are equal, decryption using the supplied key happens. Else, appropriate message is displayed and the program quits.