This study is prompted by the reality that fraud frequently happens within the sharia banking industry, which is founded on Islamic values. The Shariah Islamic Banks works by following Islamic principles that are free of interest in all aspects of its operations. According to ACFE (Association of Certified Fraud Examiners) statistics in 2016, banks and corporations are the most vulnerable to fraud. Islamic banks may follow Sharia norms; however, this does not guarantee that they will not be involved in fraud. Several replace Islamic banks because of fraud. This could be a result of a lack of sharia governance practices application. The survey was performed in both conventional and Islamic banks, with the findings indicating that implementing Shariah governance and corporate audit was advantageous in preventing fraud and strengthening Islamic banking services. Since Islamic banks are a banking enterprise that integrates the rules of banking and Islamic teachings, this investigation has crucial consequences. Sharia banking should be harmonized with the capabilities of decent human skills. The quantitative research was conducted from the participants working in multiple Islamic and conventional banks operating in Pakistan. The results support the hypothesis that both corporate governance and Shariah laws are essential for banks to operate effectively. These laws and governance procedures also help in reducing the fraudulent activities in banks, hence increasing profits and benefits both for banks and their customers. The findings of our research will help in the operations in banking sector and in future, the different researchers can also investigate further discussing single regulations and their individual benefit for the banks.