Wow. That's hectic. And it's not like you can deny them entry. I don't know how I would have reacted in the same situation.
The closest I ever came to this was when I was pulled over at a roadblock once and informed that I was driving a stolen vehicle. Turns out they were using this new technology that auto read the number plate and searched on the stolen vehicle database. Thing is, the machine read the number plate wrong and replace one of the letters.
I think if I multiply my feeling that day by 100 I might come close to what you must have felt when they violated your privacy.
RE: MY TERRIFYING EXPERIENCE : A case of mistaken identity