We consider the problem of misbehavior detection in wireless networks. A commonly adopted approach is to exploit the broadcast nature of the wireless medium, where nodes monitor their downstream neighbors locally using overheard messages. We call such nodes the Watchdogs.We propose a lightweight misbehavior detection scheme which integrates the idea of watchdogs and error detection coding.We show that even if the watchdog can only observe a fraction of packets, by choosing the error detection code properly, an attacker can be detected with high probability while achieving throughput arbitrarily close to optimal. Such properties reduce the incentive for the attacker to attack. We then consider the problem of locating the misbehaving node and propose a simple protocol, which locates the misbehaving node with high probability. The protocol requires exactly two watchdogs per unreliable relay node.