28 min read

Qilin on the rise: what Australian organisations need to know

Prepared by: Richard Grainger, Global Head of Digital Forensics

 

Who is Qilin and how do they operate?

Australian organisations are facing a sharp rise in ransomware attacks from a group known as Qilin. Over 700 victims have already been named on their dark web leak site, and Triskele Labs’ Digital Forensics and Incident Response (DFIR) team has investigated nine incidents in just the past two years. Qilin’s tactics are fast, destructive, and highly opportunistic—combining data theft with system encryption to maximise pressure on victims.

This post breaks down how they operate, why they’re so effective, and what steps you can take to defend your organisation.

 

 

Double-Extortion Tactics: Stealing Data Before Encryption 

The group consistently perform double extortion where they will exfiltrate sensitive information from victim organisations prior to deploying their ransomware. This allows them to try to extort victims for payments to not only provide a decryption tool but also supress the publishing of any stolen data on their leak site. 

During an investigation, we are looking to identify the initial access method and time, this allows us to calculate the time between initial access and the impact (encryption) of the incident – also known as dwell time. The dwell time for Qilin averages 19 days but Triskele Labs have observed them gain access to victim organisation networks, identify sensitive information repositories for exfiltration, destroy backups and encrypt systems in as little as two days. 

Qilin Blog Image - v1

 

Practical defences against Qilin attacks 

Understand your attack surface and ensure Multifactor Authentication (MFA) is enabled. 

The Qilin ransomware group are opportunistic, in the nine investigations conducted by the Triskele Labs DFIR Team, they have gained initial access into environments through exposed Remote Desktop Protocol (RDP) or Secure Socket Layer Virtual Private Networks (SSL VPNs) that have not been configured with MFA. 

Implement an Endpoint Detection and Response (EDR) platform and ensure it is deployed on every asset. 

The Qilin ransomware group have been observed utilising common tooling such as Mimikatz, LaZagne and Ngrok. EDR tooling should identify these tools being written to disk, block them upon execution and generate alerting. EDR should be deployed across all systems within organisation, not just endpoints or servers. Threat Actors will commonly identify hosts that don’t have security tooling on them and utilise these to conduct their activity without generating any alerts. 

Ensure that your security tooling is being monitored 24x7x365. 

Qilin, like most other ransomware groups are most active within victim environments in the late evening and early morning Australian time. In the investigations conducted by the Triskele Labs DFIR Team, the victim organisations did not have their security toolsets being monitored around the clock, and their first indication that they had been attacked was identifying that systems had been encrypted when staff arrived at the office in the morning. 

Ensuring that these security platforms are being monitored around the clock can allow for ransomware attacks to be contained early. 

Know your Remote Monitoring and Management (RMM) tooling and build custom detections. 

Qilin, like most other ransomware groups will utilise legitimate RMM tooling to maintain persistence within a victim organisations network. They have been observed to use tools like AnyDesk, TightVNC, Splashtop and ScreenConnect. These tools are not inherently malicious and are often used legitimately by organisation’s IT teams to remotely manage systems. Due to these being legitimate tools, they are often not alerted on by security tooling, implementing custom detections to fire an alert when RMM tools are observed within a network can be an early warning of persistence being deployed. 

Implement Vulnerability Scanning and Patch Management. 

Similar to understanding an attack surface, organisations should be continually performing vulnerability scanning of publicly accessible systems, as well as internal systems. Ensuring that processes are put in place to patch these vulnerabilities, particularly critical vulnerabilities on publicly facing systems is imperative. 

Have robust backup procedures in place and test them. 

Ransomware groups like Qilin will seek to understand what backup systems are in place for victim organisations so that they can destroy these and maximise their chances of extorting a payment for a decryption tool. Organisations need to maintain regular backup cadence and ensure that multiple copies of backups are being stored, with at least one copy being on external infrastructure that is immutable.  

Organisations also need to ensure that they are testing restores of these backups so that they can be relied upon in the event of an incident. 

Organisations should not simply restore impacted systems from the night before encryption took place. The group have been observed to have had access to victim organisations network for up to 65 days prior to encryption taking place. Backups should be analysed by experienced DFIR professionals prior to restoration.

Summary

Qilin remains one of the most active ransomware groups that are impacting Australian organisations, employing double extortion tactics, opportunistic entry points such as exposed RDP and SSL VPNs, and commonly leveraging legitimate tools to maintain persistence.

MITRE ATT&CK mappings, alongside commonly observed tooling used during Qilin attacks are detailed below. 

If your organisation experiences a Qilin ransomware attack, it is critical that you immediately notify your cyber insurer to ensure the incident is reported and managed correctly. If you do not have a cyber insurer, you should engage a reputable DFIR firm and  Legal firm without delay to ensure that the incident can be contained, investigated and the organisation can receive advice on regulatory and legal obligations. 

 

MITRE ATT&CK Mapping 

TACTIC 

TECHNIQUE 

Description 

Initial Access 

T1078.002 - Valid Accounts: Domain Accounts  

Obtain and abuse credentials of a domain account as a means of gaining Initial Access, Persistence, Privilege Escalation, or Defense Evasion. 

Initial Access 

T1133 - External Remote Services 

Leverage external-facing remote services to initially access and/or persist within a network.  

Persistence 

T1053.005 – Scheduled Task/Job: Scheduled Task  

A scheduled task was created to execute a malicious program or code. 

Persistence 

T1547.001 - Boot or Logon Autostart Execution: Registry Run Keys / Startup Folder 

Ransomware binary added on hosts as a startup item. 

Lateral Movement 

T1021.001 - Remote Services: Remote Desktop Protocol 

Use Valid Accounts to log into a computer using the Remote Desktop Protocol (RDP). 

Lateral Movement 

T1021.004 – Remote Services: SSH 

SSH was used to laterally move within the environment 

Lateral Movement 

T1021.002 – Remote Services: SMB/Windows Admin Shares 

PsExec was used to laterally move within the environment 

Defence Evasion 

T1562.001 - Impair Defenses: Disable or Modify Tools 

 

Modify and/or disable security tools to avoid possible detection of their malware/tools and activities.  

Defence Evasion 

T1070.001 - Indicator Removal: Clear Windows Event Logs 

Clear Windows Event Logs to hide the activity of an intrusion. 

Defence Evasion 

T1078.002 – Valid Accounts: Domain Accounts 

Obtain and abuse credentials of a domain account as a means of gaining Initial Access, Persistence, Privilege Escalation, or Defense Evasion. 

Defence Evasion 

T1562.004 – Impair Defenses: Disable or Modify System Firewall 

Security tooling was modified to evade detection and execute malicious programs 

Defence Evasion 

T1070.003 – Indicator Removal: Clear Command History 

PowerShell history Logs were cleared to remove evidence of the Threat Actor’s activity. 

Exfiltration 

T1048 - Exfiltration Over Alternative Protocol 

Steal data by exfiltrating it over a different protocol than that of the existing command and control channel. 

Exfiltration 

T1537 – Transfer Data to Cloud Account 

MEGAsync was installed and executed by the Threat Actor.  

Collection 

T1039 – Data form Network Shared Drive 

Data was collected from shared network drives. 

Collection 

T1005 – Data from Local System 

Data was collected from local systems 

Impact 

T1486 – Data Encrypted for Impact 

Encrypt data on target systems or on large numbers of systems in a network to interrupt availability to system and network resources.  

Impact 

T1485 – Data Destruction 

Recent Veeam backups were deleted 

Impact 

T1491.001 - Defacement: Internal Defacement 

Change to the Veeam login message and leaving ransom notes 

Impact 

T1490 - Inhibit System Recovery 

Deleting backups to limit ability to recover 

Execution 

T1569.002 - System Services: Service Execution  

Abuse the Windows service control manager to execute malicious commands or payloads.  

Execution 

T1059.001 - Command and Scripting Interpreter: PowerShell 

Abuse PowerShell commands and scripts for execution. 

Execution 

T1204.002 – User Execution: Malicious File 

Rely upon a user opening a malicious file to gain execution. 

Execution 

T1059.004 - Command and Scripting Interpreter: Unix Shell 

Shell on ESXi was used to deploy the ransomware 

Credential Access 

T1555 - Credentials from Password Stores 

Search for common password storage locations to obtain user credentials. 

Credential Access 

T1003 – OS Credential Dumping 

Attempt to dump credentials to obtain account login and credential material, normally in the form of a hash or a clear text password.  

Credential Access 

T1003.001 - OS Credential Dumping: LSASS Memory 

Attempt to access credential material stored in the process memory of the Local Security Authority Subsystem Service (LSASS).  

Credential Access 

T1003.003 OS Credential Dumping: NTDS  

Attempt to access or create a copy of the Active Directory domain database to steal credential information, as well as obtain other information about domain members such as devices, users, and access rights.  

Discovery 

T1087.002 - Account Discovery: Domain Account 

Attempt to get a listing of domain accounts. 

Discovery 

T1135 - Network Share Discovery 

Look for folders and drives shared on remote systems as a means of identifying sources of information to gather as a precursor for Collection and to identify potential systems of interest for Lateral Movement. 

Discovery 

T1046 - Network Service Discovery 

Attempt to get a listing of services running on remote hosts and local network infrastructure devices, including those that may be vulnerable to remote software exploitation.  

Discovery 

T1083 – File and Directory Discovery 

Enumerate files and directories or may search in specific locations of a host or network share for certain information within a file system.  

Discovery 

T1016 - System Network Configuration Discovery 

Netscan was executed in the environment to identify IP addresses of hosts 

Discovery 

T1087.002 – Account Discovery: Domain Account 

Domain account information was collected.  

Command & Control 

S0154 - Cobalt Strike S0154 

A commercial, full-featured, remote access tool that bills itself as "adversary simulation software designed to execute targeted attacks and emulate the post-exploitation actions of advanced threat actors". 

Command & Control 

T1219 - Remote Access Software 

Use legitimate remote access tools to establish an interactive command and control channel within a network.  

Command & Control 

T1090 - Proxy 

Reverse proxies were established by the Threat Actor. 

 

Common Utilised Tooling:

Tool 

Purpose 

Advanced IP Scanner 

Mapping organisation networks 

Advanced Port Scanner 

Mapping organisation networks 

NetScan 

Mapping organisation networks 

Mimikatz 

Dump credentials from systems 

Cobalt Strike 

Maintain persistence and perform command and control 

LaZagne 

Dump credentials from systems 

AnyDesk 

Maintain persistence 

Action1 

Maintain persistence 

MEGA 

Online cloud storage for data exfiltration 

MEGASync 

MEGA client used for data exfiltration 

PsExec 

Remote code execution across systems 

Rclone 

Data exfiltration tool 

FileZilla 

Data exfiltration tool 

WinSCP 

Data exfiltration tool 

Kopia 

Data exfiltration tool 

Process Hacker 

Dump credentials from systems 

dControl 

Disable native Windows Defender on systems 

TightVNC 

Maintain persistence 

Splashtop 

Maintain persistence 

ScreenConnect 

Maintain persistence 

Ngrok 

Maintain persistence 

SSH 

Maintain persistence