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This paper proposes FraudShield AI, a hybrid framework that integrates Long Short-Term Memory (LSTM) networks with hand-crafted Graph Topological Features to capture both temporal sequences and structural relational context. By engineering network-centric features including PageRank Centrality, In-Degree dynamics, and a custom Flow Ratio, the system shifts the detection paradigm from isolated transaction analysis to network-level forensics. A Focal Loss objective is used to address class imbalance, and a dynamic thresholding mechanism is introduced to improve resilience against low-value smurfing attacks. 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