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Niko grew up in the Yugoslavia, where he fought in the Yugoslav Wars.He later worked for organized crime syndicates as a hired-gun in Liberty City.
Niko's first encounter with Karen (then known as Michelle) is during the mission "Three's a Crowd" where Niko has to pick her and Mallorie up from the subway station and take them back to Karen's apartment in Rotterdam Hill.
During the car ride, Mallorie suggests that she and Niko go out.
After disclosing her true identity, it is revealed that Karen is a smoker.
She is not seen drinking alcohol, though it is unknown if this is related to her job or as a lifestyle choice.
Before her true identity is revealed, she becomes Niko's girlfriend under the alias Michelle. Very little is known about Karen's background because of her status as an undercover agent.