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Threat Analysis: LockBit5 and Qilin Target Italian Manufacturing — Detection and Defense Strategies

SA
Security Arsenal Team
July 27, 2026
6 min read

The RedACT project’s latest semi-annual tracker for H1 2026 paints a grim picture for the Italian industrial sector: 148 confirmed encryption-based cyber incidents in just six months. The data indicates a focused campaign by threat actors, with the manufacturing sector absorbing the brunt of the impact.

As security practitioners, we must recognize that these are not opportunistic, spray-and-pray attacks. The dominance of LockBit5 (the latest iteration of the notorious LockBit ransomware) and Qilin (a sophisticated RaaS operation known for intermittent encryption) suggests a deliberate pivot toward high-value, operational technology (OT) environments where downtime equates to massive financial loss. Defenders in the manufacturing space need to act immediately to bolster detection and resilience against these specific payloads.

Technical Analysis

Affected Environment: While the report focuses on Italian organizations, the tactics employed by LockBit5 and Qilin are platform-agnostic. The primary targets are Windows-based enterprise environments and hybrid IT/OT networks common in manufacturing.

Threat Actors & Methodology:

  • LockBit5: Continuing the legacy of its predecessors, LockBit5 is designed for speed and automation. It utilizes multi-threaded encryption to maximize the number of files encrypted before detection. In 2026 iterations, LockBit5 has improved its anti-analysis capabilities and often leverages legitimate remote management tools (like AnyDesk or ScreenConnect) for lateral movement, bypassing standard EDR heuristics by masquerading as administrative activity.

  • Qilin (aka Agenda): Qilin has surged in popularity due to its aggressive use of the Rust programming language, which allows for cross-platform compilation and complex obfuscation. A critical differentiator in recent campaigns is Qilin’s use of "intermittent encryption," locking only parts of a file to evade detection mechanisms that rely on high I/O throughput or entropy spikes. This allows the malware to remain under the radar longer, extending the dwell time within the network.

Exploitation Status: Both families are currently active "in-the-wild." There are no specific CVEs listed in the RedACT report for this specific campaign, implying that initial access is likely gained through credential theft, valid account exploitation, or unpatched services in perimeter-facing infrastructure, rather than a single zero-day vulnerability. The attacks are confirmed active and leveraging encryption-based impact tactics.

Detection & Response

Defending against LockBit5 and Qilin requires focusing on the behaviors that precede encryption—specifically the sabotage of recovery mechanisms and the abnormal command-line arguments used by these strains.

Sigma Rules

YAML
---
title: Potential Ransomware Shadow Copy Deletion
id: 9a5a3c12-d1b4-4f8a-9e6b-1c2d3e4f5a6b
status: experimental
description: Detects attempts to delete volume shadow copies, a common precursor to encryption by LockBit5 and Qilin to prevent recovery.
references:
  - https://attack.mitre.org/techniques/T1490/
author: Security Arsenal
date: 2026/07/15
tags:
  - attack.impact
  - attack.t1490
logsource:
  category: process_creation
  product: windows
detection:
  selection:
    Image|endswith:
      - '\vssadmin.exe'
      - '\wmic.exe'
      - '\powershell.exe'
    CommandLine|contains:
      - 'delete shadows'
      - 'shadowcopy delete'
      - 'Remove-WmiObject'
  condition: selection
falsepositives:
  - Legitimate system administration tasks (rare)
level: high
---
title: Suspicious PowerShell EncodedCommand Pattern
id: b2b4c6d8-e7f9-4a1b-8c3d-0e1f2a3b4c5d
status: experimental
description: Detects highly obfuscated PowerShell commands often used by Qilin for initial execution and defense evasion.
references:
  - https://attack.mitre.org/techniques/T1059/001/
author: Security Arsenal
date: 2026/07/15
tags:
  - attack.execution
  - attack.t1059.001
logsource:
  category: process_creation
  product: windows
detection:
  selection_obfu:
    CommandLine|contains: 'EncryptedCommand'
  selection_length:
    CommandLine|re: '^.*\s+[A-Za-z0-9+/]{100,}={0,2}\s*$'
  condition: all of selection_*
falsepositives:
  - Legitimate software installation scripts
level: medium
---
title: Mass File Encryption Indicator via Ransomware Extensions
id: c3d4e5f6-8a9b-4c2d-1e3f-4a5b6c7d8e9f
status: experimental
description: Detects rapid modification of file extensions indicative of LockBit5 or Qilin encryption processes.
references:
  - https://attack.mitre.org/techniques/T1486/
author: Security Arsenal
date: 2026/07/15
tags:
  - attack.impact
  - attack.t1486
logsource:
  category: file_change
  product: windows
detection:
  selection:
    TargetFilename|contains:
      - '.lockbit5'
      - '.qilin'
  timeframe: 5m
  condition: selection | count() > 10
falsepositives:
  - Unknown
level: critical

KQL (Microsoft Sentinel / Defender)

KQL — Microsoft Sentinel / Defender
// Hunt for suspicious processes deleting shadow copies and stopping services
// Common behavior in LockBit5 and Qilin campaigns prior to encryption
DeviceProcessEvents
| where Timestamp > ago(7d)
| where ProcessCommandLine has_any ("delete shadows", "shadowcopy delete", "shadowstorage")
   or ProcessCommandLine has_any ("stop-service", "Set-Service -StartupType Disabled")
| where FileName in~ ("vssadmin.exe", "wmic.exe", "powershell.exe", "cmd.exe", "net.exe")
| project Timestamp, DeviceName, InitiatingProcessAccountName, FileName, ProcessCommandLine
| order by Timestamp desc

Velociraptor VQL

VQL — Velociraptor
-- Hunt for processes exhibiting ransomware behavior characteristics
-- Specifically looking for processes touching a high number of distinct files rapidly
LET FileMods = SELECT FileName, FullPath, Mtime
FROM glob(globs="**/*", root=PathSpec(OSPath="C:\\Users"))
WHERE Mtime > now() - INTEGER(minute=30)

SELECT count(Name) AS FileCount, Name, Pid, CommandLine
FROM pslist()
WHERE Pid in (SELECT Pid FROM process_tracking(pid=FileMods.Pid))
GROUP BY Name, Pid, CommandLine
HAVING FileCount > 50

Remediation Script (PowerShell)

PowerShell
# Emergency Hardening Script for Ransomware Response
# Disables vulnerable protocols and checks for common persistence mechanisms used by LockBit/Qilin

# 1. Disable SMBv1 (if not already disabled) to restrict lateral movement
Set-SmbServerConfiguration -EnableSMB1Protocol $false -Force

# 2. Disable Remote Desktop Protocol if not strictly required
# (Manufacturing environments often leave RDP open for vendors)
$RDPRegistry = "HKLM:\SYSTEM\CurrentControlSet\Control\Terminal Server"
if ((Get-ItemProperty -Path $RDPRegistry).fDenyTSConnections -ne 1) {
    Set-ItemProperty -Path $RDPRegistry -Name "fDenyTSConnections" -Value 1
    Write-Host "[!] RDP has been disabled for hardening."
}

# 3. Audit Scheduled Tasks for suspicious OBFS execution
Get-ScheduledTask | Where-Object {$_.State -eq 'Ready'} | ForEach-Object {
    $Action = $_.Actions.Execute
    if ($Action -match "powershell" -or $Action -match "wscript") {
        Write-Host "[WARN] Suspicious Scheduled Task Found: $($_.TaskName) - Action: $Action"
    }
}

Write-Host "[+] Hardening audit complete. Review warnings immediately."

Remediation

Given the confirmed active exploitation against Italian manufacturing, organizations must move from "detect" to "contain" immediately.

  1. Isolate Affected Segments: If encryption activity is detected, physically or logically disconnect the affected VLANs from the OT network immediately to prevent the spread from IT to production lines.

  2. Credential Reset: Assume total compromise of credentials for privileged accounts in the affected scope. Force a reset of all Domain Admin and local administrator passwords. Revoke any Kerberos tickets.

  3. Vendor-Specific Patching: While no single CVE is cited in this report, LockBit5 and Qilin frequently exploit unpatched VPN gateways (Fortinet, Cisco, Palo Alto). Ensure all perimeter appliances are updated to the latest firmware released in 2026.

  4. Backup Verification: Engage your backup team to perform an integrity check of recent snapshots. Attackers often corrupt backups days or weeks before the encryption event to force ransom payment.

  5. Vulnerability Scanning: Initiate an authenticated scan specifically looking for "ZeroLogon" equivalents or recent authentication bypasses in Active Directory, as Qilin is known to abuse AD permissions.

Related Resources

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Threat Analysis: LockBit5 and Qilin Target Italian Manufacturing — Detection and Defense Strategies | Security Arsenal | Security Arsenal