The fraud was someone that was using us to validate stolen credit cards. They ran about 100 test transactions before we could lock it down. It took a while because we didn't want to detrimentally affect our customers just to stop it. So, it cost us some money in transaction fees, but beyond that, it wasn't a big deal.
As far as the transitions, it was partially cost and having extra cash and partially just being ready for it based on growing traffic or new functionality. It was never the same set of motivations. Fortunately, we never grew so fast that we didn't have time to scale with the growth. So, it was a combination of "things are slowing down a bit" and "we have the money to take the next step" and "we ought to have a better hosting environment".