Bad Betty's abilities come from her physically enhanced body parts, but it is unclear how exactly they are improved. She is a naturally intelligent person and invented all the equipment she uses in combat. Even though she is a member of Shadow Cabinet, she obviously hates Dharma. She was later replaced by a robot in the series Heroes, but it is left unclear what became of the real Bad Betty.
In the "My Name is Holocaust" miniseries it is revealed that Betty's connection to Dharma stems from him knowing her father.