Thanks for the description. I missed above where you mentioned the 'return' variable.
I'm still kind of unsure where the issue is coming from. Variables in URLs can be named any ASCII values (ex. return) and the value of that variable can be BASE64 encoded (which is what we're doing). While BASE64 can be used for nefarious things since it obfuscates the real value, it's not a direct security risk. Additionally, Joomla uses base64 throughout in URLs and POST forms.
If you have any more info from the vendor, or can pass this info along, we'll definitely do what we can to get to the bottom of it. It's trivial for us to change the variable name of 'return' to 'gotolocation', but if that's the problem, that doesn't seem like it's very proactive security. As for using BASE64 encoding, there's not much we can do about that as we need to hand Facebook a URL which it, eventually, needs to hand back to us so that we can get the user back to the correct page on your site after logging in.
Keep us posted, and if you can't get anywhere with the security vendor, let us know and we'll contact them. We don't like people recommending 'not' to use us