SMART checks a number of different aspects of the drive, if any one fall outside of specific settings it issue an alert.
Having said that, SOME of the thresholds are a bit dubious, I have HDDs that are far outside the total hours limits for smart, yet still pass every other SMART test.
Yes, back up your data and dont trust this drive for anything vital; but also download CrystalDiskInfo and do a full diagnostic scan of the drive to discover what is going on.
I cannot find either the ID code, nor the error code associated with a SSD or HDD; the ID code comes up as a USB controller!!