### New Initiative Targets Mutilated Dollar Bills to Improve Security

In an effort to enhance the security of the monetary system, several key U.S. agencies, including the Bureau of Engraving and Printing, the Secret Service, and the Advanced Counterfeit Deterrence (ACD) Steering Committee, have initiated a campaign to prevent the acceptance of mutilated dollar bills. This measure affects transactions at various retailers and financial institutions such as Walmart, Dollar Tree, Costco, Target, and other businesses.

Reports indicate that the initiative specifically targets dollar bills categorized as "mutilated." These are notes that exhibit cuts, damaged edges, or significant discoloration. The Federal Reserve currently issues banknotes in seven denominations: $1, $2, $5, $10, $20, $50, and $100. Although $500, $1,000, and $10,000 bills are no longer produced, they still remain in circulation. The new measures mandate that even these higher denomination bills be rejected if considered mutilated.

Understanding what constitutes a "mutilated" bill is essential. According to the Federal Reserve, banknotes often become mutilated due to factors like fire, misuse, or deterioration from being buried. These bills can exhibit cuts, frayed edges, or significant discoloration, making them unsuitable for standard transactions.

For those in possession of such damaged currency, the Bureau of Engraving and Printing provides a solution. Individuals are required to file a mutilated currency claim, following a step-by-step guide offered by the bureau. A Fed currency representative clarifies that the Bureau of Engraving and Printing evaluates the authenticity and value of the note using specialized tools. Once assessed, the Bureau can issue a check to the consumer for the full value of the mutilated bill.

This initiative is a significant step towards ensuring the integrity and security of the U.S. monetary system, affecting both consumers and businesses nationwide.