Previous studies in which the effects of emotional valence on old-new discrimination and source memory have been examined have yielded highly inconsistent results. Here, we present two experiments showing that old-new face discrimination was not affected by whether a face was associated with disgusting, pleasant, or neutral behavior. In contrast, source memory for faces associated with disgusting behavior (i.e., memory for the disgusting context in which the face was encountered) was consistently better than source memory for other types of faces. This data pattern replicates the findings of studies in which descriptions of cheating, neutral, and trustworthy behavior were used, which findings were previously ascribed to a highly specific cheater detection module. The present results suggest that the enhanced source memory for faces of cheaters is due to a more general source memory advantage for faces associated with negative or threatening contexts that may be instrumental in avoiding the negative consequences of encounters with persons associated with negative or threatening behaviors.