This paper addresses the problem of detecting faults in linear randomized gossip algorithms, where the selection of the dynamics matrix is stochastic. A fault is a disturbance signal injected by an attacker to corrupt the states of the nodes. We propose the use of Set-Valued Observers (SVOs) to detect if the state observations are compatible with the system dynamics for the worst case in a deterministic setting. The concept of Stochastic Set-Valued Observers (SSVOs) is also introduced to construct a set that is guaranteed to contain all possible states with, at least, a pre-specified desired probability. The proposed algorithm is stable in the sense that it requires a finite number of vertices to represent polytopic sets and it allows for the computation of the largest magnitude of the disturbance that an attacker can inject in the network without being detected. Results are presented to reduce the computational cost of this approach and, in particular, by considering only local information and representing the remainder of the network as a disturbance. The case of a consensus algorithm is discussed leading to the conclusion that, by using the proposed SVOs, finite-time consensus is achieved in non-faulty environments. A novel algorithm is proposed that produces less conservative set-valued state estimates by having nodes exchanging local estimates. The algorithm inherits all the previous properties and also enables finite-time consensus computation regardless of the value of the horizon. (C) 2016 Elsevier Ltd. All rights reserved.