Yes they can, I have gone to my family doctor and have been
diagnosed with an epidermoid cyst in the lower part of my belly
button. At first it was a purplish-blue color and recently it got
infected and flared up into something that looked like a boil. An
epidermoid cyst is basically a cyst formed in a pore in between
your skin. Hence epidermoid comes from epidermal. They aren't
common but are very possible.
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epidermoid
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Carcinoma such as squamous cell carcinoma
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the four most common types of cysts are: the Arachnoid Cyst,
also called the leptomeningeal cyst the Colloid Cyst the Dermoid
Cyst and the Epidermoid cyst, also called the Epidermoid tumor try
researching those individualy for further detail. :]