The SS did that it's been documented but mostly from the death camps, not sure about the POW camps. They were usually run bu the regular German army or the Luftwaffe (Air force)
My father fought in WWII but did not talk about it much. He was captured on Corregidor by the Japanese. Spend 39 months as their prisoner.
He also served in Korea and Vietnam.
As far as the lampshades the most known was The Which of Buchenwald. Here's a small bit of what I found on line about her.
Born in Dresden, Germany, Ilse, a librarian, married SS. Col. Karl Koch in 1936. Colonel Koch, a man with his own reputation for sadism, was the commandant of the Sashsenhausen concentration camp, two miles north of Berlin. He was transferred after three years to Buchenwald concentration camp, 4.5 miles northwest of Weimar; the Buchenwald concentration camp held a total of 20,000 slave laborers during the war.
Ilse, a large woman with red hair, was given free reign in the camp, whipping prisoners with her riding crop as she rode by on her horse, forcing prisoners to have sex with her, and, most horrifying, collecting lampshades, book covers, and gloves made from the skin of tattooed camp prisoners. A German inmate gave the following testimony during the Nuremberg war trials: "All prisoners with tattooing on them were to report to the dispensary... After the prisoners had been examined, the ones with the best and most artistic specimens were killed by injections. The corpses were then turned over to the pathological department, where the desired pieces of tattooed skin were detached from the bodies and treated further."