Facebook says my PC has malware-wants me to scan with ESET

This sounds like an ad campaign by FB, pure and simple. Otherwise they would give you a list of sites you could use. They are selling ad space to the various AM's. Why there's an exception for Edge, I don't know. Facebook is malware.

I was visiting a friend when they tried to log onto their FB account. The site said they were locked out due to a security measure FB had applied to their page. FB then said that in order to get back in they'd have to send her a code to her registered email account and asked her approval. She gave it. She followed the instructions and it didn't work. This then generated an automatic email to her address which she learned because she had that other browser window open. That email stated she'd have to prove her identity by scanning any two of the following listed forms of "acceptable" ID.
This included her State driver license, a current month utility bill, or bank statement.

I agree, FB is malware. She never went back and of course she never complied with FB's terms to let her back onto her page.
I think FB is now at a point where they're testing the gullibility of their members being people so openly share the most private stuff there now.

For the record I wouldn't trust MSE as far as I can throw it (nor the consumer-variants of Trend). I've never seen Facebook do that before (or heard of it before now), but I also have ad-block installed.

You may want to go through and double check the add-ons/extensions you're using in your browser (maybe disable all of them and see if it operates differently). It could be picking up on one of those (and many antiviruses may not detect it).

If you notice strange activity, you may want to install and run the free version of Malware Bytes Anti-Malware. It's pretty good at removing a lot of stuff a lot antiviruses miss.

I checked the Malware Bytes website. The free version is very limited in what it offers and which does not include live time protection to stop an infection getting into your machine. The free version scan would find something after the fact.

My Shalom said:

I checked the Malware Bytes website. The free version is very limited in what it offers and which does not include live time protection to stop an infection getting into your machine. The free version scan would find something after the fact.

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I meant to mention that MBAM Free is good to have in conjunction WITH an antivirus. It finds a buttload of stuff, much of which generally gets past any other antivirus. Generally just spyware and garbage that is not good to have.

The reason for these is they technically aren't viruses and (I'm guessing) have some technically legitimate "I'm real software". But as a general rule, if MBAM and Spybot detect them, you do not want them.

Spybot and MBAM can work together without issues? How do they work with Windows Defender?

My Shalom said:

Spybot and MBAM can work together without issues? How do they work with Windows Defender?

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Spybot and MBAM aren't real time, you have to run them manually (or at least, this was the case with Spybot 1.6, I don't know if that's changed in version 2). This isn't an issue with real time antivirus scanners (unless they happen to scan at the same time, but you can stop the second scan).

Windows Defender will work independently of the two, but I wouldn't recommend WD/Security Essentials anyway (still they are better than nothing). You can have all three installed at the same time and run MBAM and SB every so often to clean up anything that may be causing problems. Generally a lot of dodgy browser extensions/add-ons will get past a typical antivirus but will be removed by MBAM and Spybot.

First off, gold star for sharing MacArthur!

I don't know where you live but I know in the UK almost all banks offer free anti-virus. Mine offers Kaspersky and I like to think I am pretty tech-savvy and it is by far the best I have ever used and it's one I will always continue to use. Norton is another decent one but I don't think I'd be prepared to pay for it but if it's offered free then take the offer for sure.

Either way, check around your bank site and particularly the online banking section(the main reason it's offered is to limit getting infected and in turn having your online account tampered with) and see what, if anything, is available.

Oh and on a final note, you are not paranoid at all. So many things nowadays hijack your system or browser and install things that are simply a pain to remove. Even most legitimate products you can't just use the recommended install anymore because they include junk you would normally just uncheck the box; something you now have to do in the advanced install option.