This is how business works -- people will openly lie to you to get what they want. The recruiter most likely knew that number was out of range, but also most likely didn't care, because they probably get paid based on how many people they put through the process that reach some milestone in the interview process.

Recruiters are just sales people. They usually have limited if any tech background and heavy business or sales background. They should be treated skeptically, like any other sales person.