That's not true. Let's say without a KWS, an Anaconda's bounty shows as 200k. The KWS will push it up to about 260k. That can be doubled if you reach level 5 PP, so it increases to 520K of which 10% won't show in the bounty claims above because they have to be claimed in Empire/Alliance space, so the 520K goes down to 480k. That's 240% of the original bounty, not 400%.
For all you skeptics, those claims are genuine, and the above has reminded me that there's another 10% still waiting to be claimed.
As a few of you have asked, I'm not going to make it easy by spelling it out in detail, but I'll give some clues: First, you need level 5 PP and a KWS for the 240% increase. Without it, the 400 million payout would only have been 170 million, although that's still a lot of bounty money. The next thing you need to do is go to a HI RES and do everything you can to encourage the pirates to come. I'm sure that if you do a bit of research, you can find out what to do for that. Then one more thing: There's a clue in this picture that shows the pirates swarming in. That's six Clippers in front of me and there's another six big ships behind me, all waiting to die: