How to Set Up Text Alerts from Your Bank

Bank text alerts are one of the simplest and most effective fraud-protection tools available — and most banks offer them for free. When you turn them on, your bank sends you a text message any time there is activity on your account: a purchase over a certain dollar amount, a new login from an unknown device, a low balance, a large ATM withdrawal, or any transaction at all. You find out in seconds instead of discovering a problem weeks later when your statement arrives.

Seniors are among the most common targets of bank fraud and identity theft, and catching it early is everything. If someone makes an unauthorized purchase on your debit card and you report it within two business days, federal law limits your liability to $50. Wait more than 60 days and you could be on the hook for the full amount. Text alerts give you the fastest possible notice.

Every major US bank — Chase, Bank of America, Wells Fargo, Citibank, U.S. Bank, Capital One, and most credit unions — offers account alerts through their mobile app or website. The setup takes about five minutes and is done entirely in your account settings.

The most useful alert to turn on first is the transaction alert with a low dollar threshold. Set it to $1 so you're notified of every single purchase. That way, if someone charges even a small test transaction (which fraudsters often do to verify a stolen card before making big purchases), you see it right away.

Low-balance alerts are also worth setting up. Pick an amount below which you'd want to know — say $200 — and the bank will warn you before you accidentally overdraft. Overdraft fees average $35 per incident at most banks.

Login alerts are the third must-have. Any time someone logs into your online banking from a new browser or device, you get a text. If it wasn't you, you can change your password right away before any damage is done.