ANSWER:

What they have said is absolutely baseless and fabricated!

No problem in cutting hair for women as long as you do not cut them short enough to imitate men’s hairstyle and not have an haircut that is exclusively done by kafir women. 

You must conceal it in front of non mahram men and while going out.

QUESTION: I want to ask that I hv a short haircut. Like my hair are till shoulder length. I hv heard from many ladies around me that a female cannot have a short hair cut. She should have hair till chest. So after her death, her chest will be covered with her hair. Is it true? Can I have shoulder or shorter than that hair? Because I feel comfortable in combing and settling.