I have seen many posts here about /etc/hosts, but I don't see them addressing this issue. The issue is:
If a person adds 127.0.0.1 mywebsite.com
to their /etc/hosts file and 127.0.0.1 has dangerous social engineering and other malicious content. When the access mywebsite.com in Chrome, which has the Safe Browsing technology, will it blacklist the domain? If it will, then that would be a serious problem to the actual holder of the website. I don't want to try this. But, any suggestion about this? Also, if they created a self signed certificate and trusted it for HTTPS on sites with HSTS. I am not sure if you can create a custom DNS server, because Google SafeBrowsing might not want to flag websites inside the /etc/hosts file, creating a custom DNS server might stop it from excluding the domain. That would be a problem too right?
And if they can create a custom DNS server, they could make host the malicious website on a web hosting provider to make it public and pointed the poor domain to that IP address, so, even if Google Safe Browsing avoided 127.0.0.1, that would be a problem too.
This is a really serious problem if any of the above works!