Mistwatch Bandits are bandits that inhabit Mistwatch. They are employed by Fjola. They are generally Nords and Orsimer. They were torturing the Frightened Woman and a dead Imperial woman in a cage in Mistwatch.
Mostly, they wear iron, fur, studded, or steel armor, and carry any number of iron or steel weapons. Occasionally, a mage with a staff may spawn. They are much stronger than characters labeled only "Bandit," and may be as strong as Bandit outlaws, highwaymen, thugs, plunderers or marauders, depending on the Dragonborn's level.
Once the Dragonborn has accepted Fjola's quest to convince Christer that she is dead, all of the remaining Mistwatch bandits become friendly, much like the Forsworn at Druadach Redoubt after completing No One Escapes Cidhna Mine.