They don’t go off last names
The sequence your DNA, literally decoding it into all the base pairs that make up your DNA. They look in the database for people with similar DNA. You get half your DNA from your mom and half from you dad, so if they find someone who has ~50% overlap with you, then it’s your mom or dad or a sibling. ~25% would be a aunt, uncle, niece or nephew, or grandparents. 12.5% would be a first cousin etc
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