Video software to add video effects similar to Apple's Photo Booth
If you want to create the same effect after you shot the video, you could use Adobe After Effects.
Chose one of the filters under Effect>Distort. For example, let's choose Bulge.
Now you need to create keyframes so that the central point moves along with the face. You can either do this manually or use a tracker.
There are a lot of tutorials on tracking.