Effective toxic content detection relies heavily on high-quality and diverse data, which serves as the foundation for robust content moderation models. This study explores the potential of open-source LLMs for harmful data synthesis, utilizing prompt engineering and fine-tuning techniques to enhance data quality and diversity. In a two-stage evaluation, we first examine the capabilities of six open-source LLMs in generating harmful data across multiple datasets using prompt engineering. In the second stage, we fine-tune these models to improve data generation while addressing challenges such as hallucination, data duplication, and overfitting. Our findings reveal that Mistral excels in generating high-quality and diverse harmful data with minimal hallucination. Furthermore, fine-tuning enhances data quality, offering scalable and cost-effective solutions for augmenting datasets for specific toxic content detection tasks. These results emphasize the significance of data synthesis in building robust, standalone detection models and highlight the potential of open-source LLMs to advance smaller downstream content moderation systems. We implemented this approach in real-world industrial settings, demonstrating the feasibility and efficiency of fine-tuned open-source LLMs for harmful data synthesis.