It all depends. Most people do it under the table. You're allowed to give up to $28,000 a year from a couple, or $14,000 from a person as a gift without reporting it. This is in the IRS rules. It does not have to be reported.
By under the table, I mean if you have the means then treat someone to dinner, or buy their groceries, gas or clothing/furniture for them. That can't be tracked and is allowable.
I just don't understand Social Security going after this poor woman. A politician needs to intercede on her behalf, and rein in overzealous agents.
This was a winning, not a gift from a person.