Cops are raiding the homes of innocent people based only on IP addresses

I found out that my rural parents' ISP is pooling their public IP address with more than one household. Not exactly sure how many. We discovered this because somebody in the pool was doing dodgy things via CraigsList and CL blocked the IP address. Meaning Mom and Dad couldn't browse antiques.

When I read about stories like this, I worry about them being raided.