In this paper, we present a novel fragile watermarking approach that can localize tampered areas and resist the counterfeiting attack. Our algorithm eliminates communication security problem by using calculation signature function to create message signature for each block. Toral automorphism is applied for resisting counterfeiting attack. In particular, an image is divided into several non-overlapping blocks and signatures of each block are spread into other blocks that are chosen by toral automorphism with embedding keys. The effectiveness of our scheme is provided in experiments.