Our research aims to synthesize magnetic nanoparticles that can be well dispersed in solutions of poly(ethylene oxide) by particle surface modification. Magnetic particles of magnetite and cobalt ferrite were synthesized through the co-precipitation technique. The polymeric stabilizer di-carboxy(polyethylene glycol) (DCPEG) was added during particle synthesis to control particle size and avoid particle agglomeration and precipitation. Adsorption of DCPEG on the nanoparticle surface has been confirmed through FT-IR. The hydrodynamic diameter of the coated particles was measured using Dynamic Light Scattering. Using a Rheometer we observed a constant strain interval in elastic and viscous modulus of the poly(ethylene oxide) solution. These nanoparticles were used to study the formation of fibers with reproducible and controllable magnetic domains using the electrospinning technique. The magnetic response of these fibers to an oscillating magnetic field will generate a magnetic fingerprint that can be used in anticounterfeiting and smart clothing applications.