I think the Zombie tags will do RFID cloning and randomization.
I don't think it will literally turn people into zombies, but by having the tags steal and swap IDs randomly, Sleepless can cause much needed chaos on demand. So suddenly the pay-police see the poor as the ones who are paying, identity theft and destruction of the tag system. Of course, it probably can't work constantly, as eventually the Authorities would adapt, but for creating chaos and confusion on demand for a day.. perfect.
I suspect Warren has revealed something Significant in the Whitechapel discussion thread for this issue.
In reply to this post by Drinkwater (re. DS's radio rants - especially the 'authenticity' speech)
"...is the whole point that I, like the Grinders, would become so entranced by this sort of message that Dr. Sleepless would be able to use me to end the world?"
Warren replied:
"Ding!
Also: crazy people lie all the time and make no sense!"
So... seems a clear(ish) statement from Warren that DS is indeed aiming to end the world & is manipulating the Grinders to do so - directly, no subtlties, just End It.
Or that Warren is manipulating the readers/Grinders/us to do the same!
Or that both he and DS are mad.
Or both.
Seriously though... closest we've got to a statement of just what DS is actually up to, and seems to say that he is indeed The Bad Guy.
Or maybe ending the world would be an upgrade? A Grind?
(Not entirely sure about the deeper stuff going on - which of course is good, it would suck if we managed to work out the plot of the book when half way through! But I thought the comment worth flagging.)