Machine-learning diagnostic systems are widely used to detect abnormal conditions in electrical equipment. Training robust and accurate diagnostic systems is challenging because only small databases of abnormal-condition data are available. However, the performance of the diagnostic systems depends on the quantity and quality of the data. The training database can be augmented utilizing data augmentation techniques that generate synthetic data to improve diagnostic performance. However, existing data augmentation techniques are generic methods that do not include additional information in the synthetic data. In this paper, we develop a model-based data augmentation technique integrating computer-implementable electromechanical models. Synthetic normal- and abnormal-condition data are generated with an electromechanical model and a stochastic parameter value sampling method. The model-based data augmentation is showcased to detect an abnormal condition of a distribution transformer. First, the synthetic data are compared with the measurements to verify the synthetic data. Then, ML-based diagnostic systems are created using model-based data augmentation and are compared with state-of-the-art diagnostic systems. It is shown that using the model-based data augmentation results in an improved accuracy compared to state-of-the-art diagnostic systems. This holds especially true when only a small abnormal-condition database is available.