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Account Lockout not working as expected

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Hi,

We are running Win 2008R2 servers fully patched, and have a Domain Default Policy applied to all computers/servers) on the domain. In that GPO we configured the following:

Account lockout threshold : 3 invalid attempts

Reset account lockout counter after :  5 minutes

So basically, for a given domain user account, 3 invalid password are submitted within 5 minutes, you (should) get an account lockout.

If you attempt to logon to a host manually and provide wrong passwords, the account locks out. The same is not true if a process/malware/non-human-thing  submits wrong passwords

I can get 10 account logon failures within a single second, each with their own distinct serial number... no lockout. I can get 50 logon failures in 5 minutes... no lockout.  

I did a RSoP, everything looks normal.

The logon failure event ID # is 4771 with error code 0x18.

How do I troubleshoot this? Thanks


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