From a report by Social Security's Office of Inspector General (OIG):
We identified 18 sexual predators who were involuntarily confined in 4 SCCs [Special Commitment Centers] and who improperly received approximately $524,000 in Social Security benefits and/or Supplemental Security Income payments.
Our review indicated that, after States transferred these sexual predators from prison to an SCC, the individuals contacted SSA to apply for benefits or request resumption of payments that SSA had suspended while they were incarcerated. While benefit suspension provisions continued to apply to these individuals, a mechanism had not been established to ensure SCCs reported inmate information to SSA. Consequently, SSA did not have the information it needed to prevent initiation of payments to these individuals.This can easily be sensationalized and probably will be but it's a quite minor issue affecting only a handful of cases. It will be quickly resolved.