The incidence of squamous cell carcinoma developing from an epidermal inclusion cyst has been estimated to range from 0.011 to 0.045%.

[5] Epidermoid cysts are usually diagnosed when a person notices a bump on their skin and seeks medical attention.

The definitive diagnosis is made after excision by a pathologist based on microscopic appearance of a cystic lesion lined by cornified epithelium containing lamellated keratin without calcifications.

[8] Hydrogen peroxide is no longer recommended for wound care by doctors as it can damage the healing tissues.

The majority of epidermal inclusion cysts originate from the infundibular portion of the hair follicle, thus explaining the interchangeable,[14] yet inaccurate, use of these two terms.