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Bandits are a common enemy within the Starbound universe. Each bandit has a small chance to drop a Bandit's Hood if the bandit is male or a Bandit's Bandana if the bandit is female. Bandits will wear the chest and leg pieces to the Explorer's Set, which is rarely sold by merchants across the universe.
Bandits are also commonly found on U.S.C.M. ships in Space Encounters, with two or three bandits guarding the main treasure. They can also be found in many Bandit Ships. In the lore, bandits are confirmed to be former U.S.C.M. members, and the rusted-out ships they can be found on are confirmed to be former U.S.C.M. ships.