I can't attest to the peanut butter trick, but many SS men did try to hide it by burning (which still showed scars that they were SS). In the Soviet areas they were shot, in the western side they went to de-nazification camps. Read Johann Voss's "Black Edelweisse, confessions and conscience of a Waffen SS soldier". He escaped the retraining because the day he was to be tattoed, his father visted him and he was not tattoed. He then worked for the Americans dong legal work.