Yup. There's a few ways. The image can be set using the Open Graph Tags. In the Social Configuration area, you can set a site-wide default image by adding the following line to the big defaults box:
image=http://site.com/link-to-image.jpg
Then, on each page, you can set a specific image to override the default by putting the following tag anywhere on the page:
{JFBCGraph image=http://site.com/link-to-better-image.jpg}
Finally, for Joomla Content or K2 Items, there's a setting in the Open Graph area for JFBConnect to automatically use the first image in the article.
Hope that all helps. Once you do update the image, you'll need to wait a day for Facebook to refresh it's cache. Alternatively, you can use their URL debug tool to update it immediately, and see what Facebook thinks is configured:
developers.facebook.com/tools/debug
Good luck,
Alex