Which of the following best defines external fraud?

The definition of external fraud focuses on actions that are carried out with the intention of deceit, primarily aimed at financially harming the government. This type of fraud typically involves elements of criminal intent and represents a serious violation of legal and ethical standards. In this context, the correct answer highlights that external fraud is a felonious act of corruption or an attempt to cheat the Government, encapsulating behaviors that are not only unethical but also illegal.

In contrast, the other options do not capture the essence of external fraud. Actions committed by charge card program officials may not involve external parties and often relate to internal misconduct rather than external fraud. A misunderstanding between the Cardholder and supplier typically does not indicate a deliberate attempt to deceive but rather a lack of communication or clarity. Similarly, misplacing receipts involves an issue of organization rather than intent to commit fraud, which again fails to meet the threshold of a felonious act aimed at harming the government financially.