I would think I can trust anything on 127.0.0.1 because that can only be my local machine, right? If there is something running on 127.0.0.1:8716 which I have

I would think I can trust anything on 127.0.0.1 because that can only be my local machine, right? If there is something running on 127.0.0.1:8716 which I have not given permission to run then my machine is compromised already. No?