Baghdad, Iraq ? Nearly half the money funding insurgents comes from outside the country, according to a senior Iraqi official. But officials suggest old sources are drying up and the radical groups are turning to ransom kidnappings – up to 10 a day in Baghdad alone – to finance their guerrilla attacks.

Other sources of funding include extortion, attacks on fuel tankers and other types of banditry, and possibly even government money earmarked for securing infrastructure and battling the insurgency – either directly or through corrupt officials.

A senior Iraqi Interior Ministry official, Maj. Gen. Ahmed al-Khafaji, said this week that at least half the insurgency’s funds are believed to come from outside the country. Much of the rest comes from ransoms or donations by wealthy merchants and prominent figures.

Iraqi officials estimated three to 10 kidnappings a day in Baghdad alone. Most victims are Iraqis, whose families pay between $3,000 and $50,000 for their release. Virtually none of the kidnappings are reported to police.