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HAL-05 Highlight possible fund dividends scenario with fake account #42

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Dec 4, 2024
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8 changes: 8 additions & 0 deletions README.md
Original file line number Diff line number Diff line change
Expand Up @@ -963,12 +963,20 @@ sequenceDiagram

1. Amount of entitled dividend token is transferred from the `Dividends` PDA to the rightful recipient.

## Security implication
**Please note:** *Anyone can create a Security Token* with related Access Control data and a Distributor.

However, **someone might attempt to deceive the issuer** into funding dividends into fake accounts, which could result in **a loss of funds**.

Therefore, the issuer must use **a trusted service** to fund dividends or validate Security Token address inside instruction to mitigate this risk.

## Relevant Methods

### New Distribution Creation Code

A new distribution can be created with a call to the Solana program like this.


**Solana Web3 TS call:**
```typescript
await program.methods
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