>I don't understand how this is possible at all.
You're confusing Sensitivity (also called the true positive rate), Specificity (also called the true negative rate), and conditional probabilities.
>I used to belong to a gym that used a fingerprint reader for entry, and it correctly identified me (flashing my name) from the other 1,000+ members each time.
This is the finger-print reader's sensitivity, P ( Access granted or positive identification | Correct key is supplied [your thumb] ). It is not Probability ( Access granted or positive identification | Incorrect key is supplied)
It's because of Bayes theorem. https://en.wikipedia.org/wiki/Bayes%27_theorem#Drug_testing