In this paper, we propose a fragile watermarking scheme in wavelet domain which is sensitive to all kinds of modifications and has the ability to localize the tampered regions. The proposed scheme is a key-dependent, content based and non-deterministic neighborhood-dependent method so that it can resist the well-known attacks including the transplantation attack and vector quantization attack. The most remarkable feature of the proposed scheme is that only a small number of wavelet coefficients are watermarked but all are implicitly protected. So the embedding distortion is dramatically reduced without compromising the authentication resolution. In addition, analyses on both algorithm and security of the scheme are provided, and the simulation results are also presented to visually validate the proposed scheme.