Needed material :
A picture
Funhouse filtre, downloadable here.
1 Open the picture you want to frame. Resize it to 500 pixels high.
Duplicate the picture twice.
2 On the first copy,
Adjust Blur Gaussian blur : 25.
Double-click on the background layer and Promote to a raster layer.
Reduce opacity to 50%.
Layers Merge all.
3 Effects Funhouse Filtre - Xaggerate : 24/24.
4 Image Add borders : 2 pixels of a dark colour.
Image Add borders : 20 pixels of a light colour.
Select this border and apply a 3D inner bevel :
2nd bevel/13/32/3/17/0/White/315/32/40.
Image Add borders : 2 pixels of a dark colour.
5 Activate the second copy of the picture.
Image Resize to 75%.
6 Images Add borders : 10 pixels light colour.
Select that border and apply a 3D inner bevel effect :
2nd bevel/13/32/3/17/0/white/315/32/40.
Image Add borders : 2 pixels of dark colour.
Edit Copy.
7 Edit Paste as a new layer on the previous picture.
Layers Merg all.