Unsecured WCF Service throws SecurityAccessDeniedException - wcf

Question

Trying to get a demo service running I'm using the following config.
<bindings>
<basicHttpBinding>
<binding name="basicBinding">
<security mode="None">
<transport clientCredentialType="None" />
</security>
</binding>
</basicHttpBinding>
<wsHttpBinding>
<binding name="wsBinding">
<security mode="None">
<transport clientCredentialType="None" />
<message establishSecurityContext="false" />
</security>
</binding>
</wsHttpBinding>
</bindings>
<services>
<service behaviorConfiguration="Integration.Server.ImportServiceBehavior" name="Integration.Server.ImportService">
<endpoint name="ImportServiceSoap"
behaviorConfiguration="NoIpConfiguration"
address="soap" binding="basicHttpBinding"
bindingConfiguration="basicBinding"
contract="Integration.Server.IImportService"/>
<endpoint name="ImportServiceSoap12"
behaviorConfiguration="NoIpConfiguration"
address="soap12" binding="wsHttpBinding"
bindingConfiguration="wsBinding"
contract="Integration.Server.IImportService">
<identity>
<dns value="localhost"/>
</identity>
</endpoint>
<endpoint address="mex" binding="mexHttpBinding" contract="IMetadataExchange"/>
</service>
</services>
<behaviors>
<serviceBehaviors>
<behavior name="Integration.Server.ImportServiceBehavior">
<serviceMetadata httpGetEnabled="true"/>
<serviceDebug includeExceptionDetailInFaults="true"/>
</behavior>
</serviceBehaviors>
<endpointBehaviors>
<behavior name="NoIpConfiguration">
<wsdlExtensions location="http://*** external server address ***/IntegrationServer/ImportService.svc" singleFile="true"/>
</behavior>
</endpointBehaviors>
</behaviors>
<extensions>
<behaviorExtensions>
<add name="wsdlExtensions" type="WCFExtras.Wsdl.WsdlExtensionsConfig, WCFExtras, Version=1.0.0.0, Culture=neutral, PublicKeyToken=null"/>
</behaviorExtensions>
</extensions>
The service is hosted in IIS on xp.
<authentication mode="None"/>
IIS Authentication is set to Anonymous (integrated and basic is unchecked).
What could be the reason I get SecurityAccessDeniedException?
(The execution never reaches the service class.)
Stack trace from the client
Server stack trace:
at System.ServiceModel.Channels.ServiceChannel.ThrowIfFaultUnderstood(Message reply, MessageFault fault, String action, MessageVersion version, FaultConverter faultConverter)
at System.ServiceModel.Channels.ServiceChannel.HandleReply(ProxyOperationRuntime operation, ProxyRpc& rpc)
at System.ServiceModel.Channels.ServiceChannel.Call(String action, Boolean oneway, ProxyOperationRuntime operation, Object[] ins, Object[] outs, TimeSpan timeout)
at System.ServiceModel.Channels.ServiceChannel.Call(String action, Boolean oneway, ProxyOperationRuntime operation, Object[] ins, Object[] outs)
at System.ServiceModel.Channels.ServiceChannelProxy.InvokeService(IMethodCallMessage methodCall, ProxyOperationRuntime operation)
at System.ServiceModel.Channels.ServiceChannelProxy.Invoke(IMessage message)
Exception rethrown at [0]:
at System.Runtime.Remoting.Proxies.RealProxy.HandleReturnMessage(IMessage reqMsg, IMessage retMsg)
at System.Runtime.Remoting.Proxies.RealProxy.PrivateInvoke(MessageData& msgData, Int32 type)
at SyncTestApp.SyncServiceReference.IImportService.Sync(Employment[] employments)
at SyncTestApp.SyncServiceReference.ImportServiceClient.Sync(Employment[] employments) in D:\Integration\SyncTestApp\Service References\SyncServiceReference\Reference.cs:line 809
at SyncTestApp.Program.Main(String[] args) in D:\Integration\SyncTestApp\Program.cs:line 78
at System.AppDomain._nExecuteAssembly(Assembly assembly, String[] args)
at System.AppDomain.ExecuteAssembly(String assemblyFile, Evidence assemblySecurity, String[] args)
at Microsoft.VisualStudio.HostingProcess.HostProc.RunUsersAssembly()
at System.Threading.ThreadHelper.ThreadStart_Context(Object state)
at System.Threading.ExecutionContext.Run(ExecutionContext executionContext, ContextCallback callback, Object state)
at System.Threading.ThreadHelper.ThreadStart()