As you board a bus or tram here in Krakow you will notice that some people validate their tickets in the little yellow machines whilst many others just get on board and travel. This is not a 2-tier system! Everyone must have a valid ticket and even if you make several journeys and never see anyone else punching their tickets, nor see anyone checking tickets, DO NOT assume that tickets are unnecessary! The fine for not having a ticket is 100 zloty and will be enforced rigorously.
I was on a tram going into town on a Sunday morning when I observed the inspectors in action. These were just two normal-looking passengers with no obviously official uniform or identification until they actually boarded. They waited anonymously until everyone else has boarded the tram and then entered, one at the front and the other at the rear, and only then produced their official laminated ID and hand-held remote ticketing machine.
These guys didn't mess and checked each ticket and pass with diligent scrutiny and didn't look like they were going to take any prisoners. On the seat opposite where I was sitting was a youngish guy, maybe mid-twenties, quite intellectual looking and reasonably dressed. On his lap sat a perfectly-behaved little girl, very obviously his daughter, perhaps 3 years old with the most beautiful long blond curly hair I have ever seen and eyes to match.
Even though I didn't fully understand the precise conversation that ensued between him and the inspector it involved a lot of body language which was self-explanatory - the inspector asked for his ticket, the guy went through the motions of searching his pockets, looking on the floor and under his seat and I assume tried to explain that he must have lost his ticket.
Nope, no excuses accepted, despite the little girl now bursting into tears. The second inspector joined his colleague and without any shouting or other intimidation quite subtly bracketed the guy and his child and escorted them off at the next stop. It didn't look like it was ending with just a simple expulsion though as the inspectors were still "chatting" to the fare-dodger as the tram pulled away again. This I assume was a local and who should have known better - so be warned!!!
As an addendum: You should note that whilst there are reports of false inspectors it is almost unheard of for anyone to get away with scamming you as the locals will realise immediately and the drivers get shown the ID too.
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Website: http://www.mpk.krakow.pl/