I'm seeing the potential for improvement beyond just the KWS; you have a chance to improve bounty hunting in general.
As far as the KWS goes, I have one suggestion. Upon completion of the scan, it would show the top three bounties for that jurisdiction in addition to the already visible bounty. Only revealing one bounty at a time in succession might look nice for punishing the offending player, but it's not much use for anyone looking to collect on them.
There would need to be two sets of rules. For players, it would work exactly as described above. For NPC's, it would need some background mechanics. When an NPC is scanned initially, it would show the local bounty as it does currently. When the KWS is used, the sim would would randomly choose three values in between 5,000 Cr and 50% of the initial value, then add these three new random(ish) values to that initial value for a final scanned bounty. This means that a wanted anaconda could have a scanned bounty as low as 265,000 Cr, or (with 250,000 as a base value) or as high as 625,000 Cr. This would soundly fix the biggest issue bounty hunting has: the pay.
To be clear, I'm approaching this from the standpoint that bounty hunting does not pay even remotely enough at the moment. Right now, it's used as the new player's quick earner. What should be the greatest risk/reward activity available is currently neither. To claim a bounty, you only need to scratch a target and let police do the work. This needs to be eliminated to clear the way for better payouts.
You would need to add a damage threshold to NPC's in order to claim their bounty; perhaps 25% hull damage or 50% of the power plant, if that's the cause for destruction. The scanning changes outlined above would increase the reward, and the need to deal more damage would increase the risk. A smaller ship would need to spend significantly more time near their target, and consistently dealing damage. Given how NPC's seem to work, this is almost guaranteed to draw their attention, and their weapon fire by extension. If you're not prepared for that, you die.