Data Breach Scandal: Boost for Cybersecurity & Privacy Solutions

Published on 07/21/2025Trend Spotting / Early Adopter Signals

The alarming news of a startup selling hacked data to debt collectors underscores growing public concern over data privacy and cybercrime. This presents a massive opportunity for:

  1. Enhanced Cybersecurity Products: Developing and marketing advanced personal and enterprise cybersecurity solutions (e.g., identity theft protection, secure data storage, VPNs, dark web monitoring).
  2. Data Privacy Consulting: Offering services to businesses and individuals to assess, secure, and manage their data responsibly and ethically.
  3. Legal Tech for Data Rights: Building tools or platforms that help individuals monitor their data exposure, understand their data rights, and take action against misuse.
  4. Ethical Data Sourcing & Verification: Creating services that certify or verify the ethical sourcing and handling of data for companies, promoting trust and compliance.

Origin Reddit Post

r/technology

A Startup is Selling Data Hacked from Peoples’ Computers to Debt Collectors

Posted by u/chrisdh7907/21/2025

Top Comments

u/SelectivelyGood
In the case of this article, it is free with an email sign up. But if someone doesn't want to sign up, I link to the right place to go read it for free. 404 media is really something special
u/Jarnagua
Thats a hot take.
u/MC68328
The point is *it's not a paywall*. An actual paywall wouldn't be sketch.
u/KennyGolladaysMom
I’ve got news for you about your medical information. The provider is considered the co-originator of that data, and as such has rights to sell it as long as your personal information is not
u/loganwachter
It probably isn’t. But the CFPB was gutted and that’s who regulates debt collectors. It’s essentially the Wild West now that the [FDCPA](https://en.m.wikipedia.org/wiki/Fair_Debt_Collection
u/el0_0le
If you want to do mental gymnastics, go to the library, armchair logical fallacy philosopher guy. Yes. Things good for people, are typically bad for business, which results in a lower GDP.
u/RamenJunkie
Lots of places to stellar work but the majoroty of the population is broke AF right now. 
u/Akuuntus
Because laws are fake and only exist if someone is willing and able to enforce them.
u/odin_the_wiggler
The word "startup" is doing some pretty fucking heavy lifting here.
u/StonyardBurner
We won't pay taxes to send good kids to college so they can better themselves. We will pay taxes to house, feed, and clothe people who commit crimes. We suck.
u/YoshiTheDog420
These are the people we need to find and make feel scared to ever show their faces in public again.
u/Traditional-Hat-952
Parasites, the lot of them. 
u/LighttBrite
It is literally illegal. They are doing exactly what black hats do when they sell the data, just to a different costumer. It is 100% illegal.
u/BlackmailedWhiteMale
They could theoretically redirect some types of payments received, find hidden accounts, cryptocurrency, or assets in general.
u/AlanShore60607
I can imagine scammers doing that, those “collecting” on fictional debts, but not legit debt collectors.
u/SightlessIrish
In what little of the article is viewable without signing up, it mentions that multiple people thought it's probably illegal. It probably is illegal
u/[deleted]
[deleted]
u/Prior_Coyote_4376
We should have a law that forces companies to get permission from their users for each third-party sale of data.
u/triscuitsrule
Welcome to the Gilded Age under the Trump Regime where this kind of activity is not only permissible, but encouraged.
u/odin_the_wiggler
The word "startup" is doing some pretty fucking heavy lifting here.
u/duxpdx
I’d think it closer to buying stolen property.
u/[deleted]
[deleted]
u/SelectivelyGood
The article is on [Archive.Today](http://Archive.Today), but I have a paid subscription to 404 - they do very good work.
u/skwyckl
It is definitely illegal, if not, the whole justice system is a sham.
u/Xaielao
This is America, where companies are legally people. So the people who run the company aren't libel for the corporations illegal actions. And since you can't send a company to prison.. Well
u/el0_0le
So does trillions in spending for billionaires while squeezing out middle and lower class families. What's your point, Jamie Dimon? We're in a recession right now, underreported, and worse th
u/bigalcapone22
So it should be fine for someone to resell stolen goods online as long as they were not the ones who stole it in the first place.
u/SomeGuyNamedPaul
This sounds like possession of stolen goods.
u/[deleted]
[deleted]
u/el0_0le
It has already been through the Senate multiple times, and repeatedly killed, along with Net Neutrality. Boomer gotta go. We need to elect our own, locally, statewide, and in every public sea
u/SelectivelyGood
How is this even legal? How are these people not in jail right now?
u/Xu-Wu
I regularly follow 404 Media through their podcast and they've said before that they have the email address wall to stop AI bot scrapers from scraping their entire site and free articles they
u/Prior_Coyote_4376
Personal data as a human right sounds awesome as a concept. I like this.
u/Valuable-Customer666
Middle Man Money... Like debt collection agencies couldn't just hire hackers... O wait... I bet
u/SelectivelyGood
How is this even legal? How are these people not in jail right now?
u/YoshiTheDog420
These are the people we need to find and make feel scared to ever show their faces in public again.
u/SomeGuyNamedPaul
This sounds like possession of stolen goods.
u/TwistingEcho
I'd Download a property..
u/dokkababecallme
It seems that no matter what the issue at hand is, you cannot convince people to stop sending the same captured, corrupt, old ass idiots to congress. Sure, every now and then you get an AOC
u/Festering-Fecal
We don't have privacy laws and thus current administration has shown the rule of law is dead.
u/Sprugen
You should work for free too.. if you even have a job
u/SelectivelyGood
In the case of this article, it is free with an email sign up. But if someone doesn't want to sign up, I link to the right place to go read it for free. 404 media is really something special
u/Traditional-Hat-952
Parasites, the lot of them. 
u/Xaielao
This is America, where companies are legally people. So the people who run the company aren't libel for the corporations illegal actions. And since you can't send a company to prison.. Well
u/citizenjones
Personal debt equals less privacy and protections!? Is that what capitalism wants? 
u/Catodacat
America's government doesn't care about people, just corporations.
u/thebudman_420
Legally it's equivalent to paying hitmen to do your dirty work. Their hand is involved. They are also paying for what they know is stolen property. And i want 100 million for my stolen prop
u/SightlessIrish
In what little of the article is viewable without signing up, it mentions that multiple people thought it's probably illegal. It probably is illegal
u/MC68328
I'm paying for ProPublica and Wired because they stand up to the fascists (and PBS because they're victimized by them), but I'll never give 404 Media a dime because of that stupid login wall.
u/Akuuntus
Because laws are fake and only exist if someone is willing and able to enforce them.
u/CoffeeBaron
I remember something similar in the book Who Controls the Future?, a book from 2013 (right at the beginning of crypto), that proposes some sort of microtransaction every time data you generat
u/bhillen8783
Leeches feeding leeches
u/MC68328
I'm paying for ProPublica and Wired because they stand up to the fascists (and PBS because they're victimized by them), but I'll never give 404 Media a dime because of that stupid login wall.
u/SelectivelyGood
This is a fun kind of corporation. More of a criminal enterprise. A lot of that happening lately - a lot of the 'Residential proxy providers' that used to be explicit about being 'for carders
u/Duck_Soup_Marx
Sweet we can now arrest debt collectors using the service for receiving stolen goods.
u/bhillen8783
Leeches feeding leeches
u/Specific-Frosting730
Debt collectors are the scum of the earth. Especially medical debt collectors.
u/Kahnza
I'm on the *fence* about that
u/nerdypeachbabe
I also subscribe to 404 media. As a cybersecurity pro they’re the ONLY news source I’m happy to pay for. I agree with everything you said about them
u/el0_0le
We should have a law that identifies personal data as a human right, giving full ownership to the individual, whereby any interested buyer pays the individual. All data sharing should be trea
u/Sprugen
You should work for free too.. if you even have a job
u/SelectivelyGood
They used to have an actual paywall. The current strategy is to give people a few articles for free with an email, and then present with a paywall. Some articles are entirely paywalled. Some
u/bigalcapone22
So it should be fine for someone to resell stolen goods online as long as they were not the ones who stole it in the first place.
u/el0_0le
We should have a law that identifies personal data as a human right, giving full ownership to the individual, whereby any interested buyer pays the individual. All data sharing should be trea
u/el0_0le
I knew there would be at least 1 person who clinged onto the absolutist statement. I'm done arguing for "businesses know best," bud. That ship sailed. Pay the individual. Put money into the
u/el0_0le
I knew there would be at least 1 person who clinged onto the absolutist statement. I'm done arguing for "businesses know best," bud. That ship sailed. Pay the individual. Put money into the
u/sinnur
If this happens and you thought hacking was bad before just wait till they figure out they have a legit resell opportunity. Hacking will increase 10X what it is now.
u/coconutpiecrust
Wow. How innovative and entrepreneurial of them. Truly groundbreaking, pushing the boundaries of human ability and knowledge.  I am sad “basket of deplorables” never quite caught on. It was
u/Festering-Fecal
We don't have privacy laws and thus current administration has shown the rule of law is dead.
u/squakmix
Then you're the problem
u/Arrow156
Why aren't people selling personal data of the sleezeballs who sell peoples personal data? Gotta be a couple hacktivists still out there who want to see these people suffer.
u/triscuitsrule
Welcome to the Gilded Age under the Trump Regime where this kind of activity is not only permissible, but encouraged.
u/SelectivelyGood
That's exactly what they are doing. There is no paywall on every article. There is no adblock blocker.
u/[deleted]
[deleted]
u/drunkerbrawler
Absolutely, they would bring back debtors prisons if they could.
u/ymcameron
Man I bet you can make so much money if you have a modicum of talent and a complete lack of morals.
u/el0_0le
If you want to do mental gymnastics, go to the library, armchair logical fallacy philosopher guy. Yes. Things good for people, are typically bad for business, which results in a lower GDP.
u/AlanShore60607
Maybe we’re seeing Season 3 of The Rehearsal play out in real time?
u/MC68328
The point is *it's not a paywall*. An actual paywall wouldn't be sketch.
u/SelectivelyGood
Sorry that paywalls offend you like that. 404 Media is a tiny, tiny company. They are trying to convert people into subscribers. They don't email advertising but do send out a newsletter. :
u/Specific-Frosting730
Debt collectors are the scum of the earth. Especially medical debt collectors.
u/AlanShore60607
Legality aside, I don’t see much value to this. Debt collectors already have your SSN and basic info; not sure what they think they’re doing here. I mean … maybe if there’s a judgement and
u/AlanShore60607
I can imagine scammers doing that, those “collecting” on fictional debts, but not legit debt collectors.
u/Gustave_the_Steel
Sounds like a great way to launch multiple lawsuits against debt collectors. Especially those you've never given consent to or have no business doing with.
u/Prior_Coyote_4376
We should have a law that forces companies to get permission from their users for each third-party sale of data.
u/Prior_Coyote_4376
Personal data as a human right sounds awesome as a concept. I like this.
u/Dihedralman
I 100% agree. And furthermore data use should carry the assumption of royalties. Even how someone does a job for a company should be protected in the era of AI. 
u/SelectivelyGood
That's exactly what they are doing. There is no paywall on every article. There is no adblock blocker.
u/citizenjones
Personal debt equals less privacy and protections!? Is that what capitalism wants? 
u/FanDry5374
Well...for *some* people.
u/justanaccountimade1
The reason a quarter of the world's prison population is in the US, is because in the US you can squeeze $50k/yr out of people who are labeled "lost to the economy" by putting them in jail.
u/Tim-Sylvester
Providing direct aid to needy people is "socialism" and we can't afford it, but throwing those needy people in prison and giving $300k per person per year to a wealthy corporation makes perfe
u/el0_0le
^ This. "Don't vote incumbent." 📌🔨
u/el0_0le
It has already been through the Senate multiple times, and repeatedly killed, along with Net Neutrality. Boomer gotta go. We need to elect our own, locally, statewide, and in every public sea
u/citizenjones
Personal debt equals less privacy and protections!? Is that what capitalism wants? 
u/RamenJunkie
Lots of places to stellar work but the majoroty of the population is broke AF right now. 
u/el0_0le
America is corrupt from top to bottom, I'm aware. You're also likely to be groped by medical students under surgery. Doesn't stop people from getting surgery. Talking about these issues is
u/AlanShore60607
Maybe we’re seeing Season 3 of The Rehearsal play out in real time?
u/Tim-Sylvester
Providing direct aid to needy people is "socialism" and we can't afford it, but throwing those needy people in prison and giving $300k per person per year to a wealthy corporation makes perfe
u/SelectivelyGood
The article is on [Archive.Today](http://Archive.Today), but I have a paid subscription to 404 - they do very good work.
u/SelectivelyGood
This is a fun kind of corporation. More of a criminal enterprise. A lot of that happening lately - a lot of the 'Residential proxy providers' that used to be explicit about being 'for carders
u/bhillen8783
Leeches feeding leeches
u/GizMoeGreenberg
They are probably operating in some backwards shithole with no laws like the USA.
u/ApprehensiveSpeechs
Honestly, I see the potential loophole based on what information they provide -- I'm just not going to post it completely on Reddit. Companies are permitted to give certain records to contr
u/SiWeyNoWay
And I’m sure an EO was issues protecting the hackers against us
u/Festering-Fecal
We don't have privacy laws and thus current administration has shown the rule of law is dead.
u/KennyGolladaysMom
I’ve got news for you about your medical information. The provider is considered the co-originator of that data, and as such has rights to sell it as long as your personal information is not
u/Abadazed
The only thing I can actually imagine them doing is holding your personal accounts like social media accounts hostage, and demanding repayment of debts.
u/Arrow156
Why aren't people selling personal data of the sleezeballs who sell peoples personal data? Gotta be a couple hacktivists still out there who want to see these people suffer.
u/rodentmaster
You're so close... You almost get it...
u/drunkerbrawler
Absolutely, they would bring back debtors prisons if they could.
u/Dihedralman
I 100% agree. And furthermore data use should carry the assumption of royalties. Even how someone does a job for a company should be protected in the era of AI. 
u/bigalcapone22
So it should be fine for someone to resell stolen goods online as long as they were not the ones who stole it in the first place.
u/squakmix
Then you're the problem
u/Jarnagua
Thats a hot take.
u/drunkerbrawler
Absolutely, they would bring back debtors prisons if they could.
u/[deleted]
[deleted]
u/[deleted]
[deleted]
u/loganwachter
It probably isn’t. But the CFPB was gutted and that’s who regulates debt collectors. It’s essentially the Wild West now that the [FDCPA](https://en.m.wikipedia.org/wiki/Fair_Debt_Collection
u/justanaccountimade1
The reason a quarter of the world's prison population is in the US, is because in the US you can squeeze $50k/yr out of people who are labeled "lost to the economy" by putting them in jail.
u/sinnur
If this happens and you thought hacking was bad before just wait till they figure out they have a legit resell opportunity. Hacking will increase 10X what it is now.
u/UAreTheHippopotamus
Yup, the fox is in the henhouse. They've directed the FBI to not focus on white collar fraud investigations too. Not to mention the audacity to run crypto scams from within the White House.
u/SiWeyNoWay
And I’m sure an EO was issues protecting the hackers against us
u/SelectivelyGood
The article is on [Archive.Today](http://Archive.Today), but I have a paid subscription to 404 - they do very good work.
u/[deleted]
[deleted]
u/SelectivelyGood
How is this even legal? How are these people not in jail right now?
u/AlanShore60607
Legality aside, I don’t see much value to this. Debt collectors already have your SSN and basic info; not sure what they think they’re doing here. I mean … maybe if there’s a judgement and
u/StonyardBurner
We won't pay taxes to send good kids to college so they can better themselves. We will pay taxes to house, feed, and clothe people who commit crimes. We suck.
u/[deleted]
[deleted]
u/vlatheimpaler
This sounds like a business idea pitched by Nathan Fielder.
u/TwistingEcho
I'd Download a property..
u/el0_0le
So does trillions in spending for billionaires while squeezing out middle and lower class families. What's your point, Jamie Dimon? We're in a recession right now, underreported, and worse th
u/FanDry5374
Well...for *some* people.
u/Prior_Coyote_4376
We should have a law that forces companies to get permission from their users for each third-party sale of data.
u/CoffeeBaron
I remember something similar in the book Who Controls the Future?, a book from 2013 (right at the beginning of crypto), that proposes some sort of microtransaction every time data you generat
u/m0ezart
Maybe we should not refer to newly formed organized crime gangs as startups.
u/Catodacat
America's government doesn't care about people, just corporations.
u/Kahnza
I'm on the *fence* about that
u/el0_0le
^ This. "Don't vote incumbent." 📌🔨
u/play3rtwo
Lmao Coffeezilla is right... Crime is legal now
u/[deleted]
[deleted]
u/fullmetaljackass
> however you've yet to clearly formulate any sort of response instead of generic platitudes. You're expecting an awful lot from /r/technology.
u/skwyckl
It is definitely illegal, if not, the whole justice system is a sham.
u/fullmetaljackass
> however you've yet to clearly formulate any sort of response instead of generic platitudes. You're expecting an awful lot from /r/technology.
u/UAreTheHippopotamus
Yup, the fox is in the henhouse. They've directed the FBI to not focus on white collar fraud investigations too. Not to mention the audacity to run crypto scams from within the White House.
u/LighttBrite
It is literally illegal. They are doing exactly what black hats do when they sell the data, just to a different costumer. It is 100% illegal.
u/vlatheimpaler
This sounds like a business idea pitched by Nathan Fielder.
u/el0_0le
America is corrupt from top to bottom, I'm aware. You're also likely to be groped by medical students under surgery. Doesn't stop people from getting surgery. Talking about these issues is
u/SelectivelyGood
Sorry that paywalls offend you like that. 404 Media is a tiny, tiny company. They are trying to convert people into subscribers. They don't email advertising but do send out a newsletter. :
u/SightlessIrish
In what little of the article is viewable without signing up, it mentions that multiple people thought it's probably illegal. It probably is illegal
u/Duck_Soup_Marx
Sweet we can now arrest debt collectors using the service for receiving stolen goods.
u/[deleted]
[deleted]
u/ApprehensiveSpeechs
Honestly, I see the potential loophole based on what information they provide -- I'm just not going to post it completely on Reddit. Companies are permitted to give certain records to contr
u/coconutpiecrust
Wow. How innovative and entrepreneurial of them. Truly groundbreaking, pushing the boundaries of human ability and knowledge.  I am sad “basket of deplorables” never quite caught on. It was
u/Xu-Wu
I regularly follow 404 Media through their podcast and they've said before that they have the email address wall to stop AI bot scrapers from scraping their entire site and free articles they
u/Gustave_the_Steel
Sounds like a great way to launch multiple lawsuits against debt collectors. Especially those you've never given consent to or have no business doing with.
u/GizMoeGreenberg
They are probably operating in some backwards shithole with no laws like the USA.
u/thebudman_420
Legally it's equivalent to paying hitmen to do your dirty work. Their hand is involved. They are also paying for what they know is stolen property. And i want 100 million for my stolen prop
u/Nknights23
That’s adorable. Still not paying to read a news article
u/dokkababecallme
It seems that no matter what the issue at hand is, you cannot convince people to stop sending the same captured, corrupt, old ass idiots to congress. Sure, every now and then you get an AOC
u/duxpdx
I’d think it closer to buying stolen property.
u/SelectivelyGood
They used to have an actual paywall. The current strategy is to give people a few articles for free with an email, and then present with a paywall. Some articles are entirely paywalled. Some
u/Abadazed
The only thing I can actually imagine them doing is holding your personal accounts like social media accounts hostage, and demanding repayment of debts.
u/[deleted]
[deleted]
u/ymcameron
Man I bet you can make so much money if you have a modicum of talent and a complete lack of morals.

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