Cryptic crossword clue
Penniless pickpockets are inclined to exaggerate 7

The most common and most likely answer to this crossword clue is the 7 letter word DISTEND

I've seen this crossword clue in Independent
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Buddy explains!

The straight part
We know that "to exaggerate" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case to exaggerate = distend.
The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.
This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.

What does DISTEND mean?

DISTEND verb
  1. To extend or expand, as from internal pressure; to swell
  2. To extend; to stretch out; to spread out.
  3. To cause to swell.
  4. To cause gravidity.

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