We examine the possibility of probing dynamo action in mass-losing stars, components of Algol-type binaries. Our analysis is based on the calculation of non-conservative evolution of these systems. We model the systems USge and betaPer where the more massive companion fills its Roche lobe at the main sequence (case AB) and where it has a small helium core (early case B) respectively. We show that to maintain evolution of these systems at the late stages which are presumably driven by stellar `magnetic braking', an efficient mechanism for producing large-scale surface magnetic fields in the donor star is needed. We discuss the relevance of dynamo operation in the donor star to the accelerated mass transfer during the late stages of evolution of Algol-type binaries. We suggest that the observed X-ray activity in Algol-type systems may be a good indicator of their evolutionary status and internal structure of the mass-losing stellar components.