WCF error: The caller was not authenticated by the service

If you use basicHttpBinding, configure the endpoint security to “None” and transport clientCredintialType to “None.”

<bindings>
    <basicHttpBinding>
        <binding name="MyBasicHttpBinding">
            <security mode="None">
                <transport clientCredentialType="None" />
            </security>
        </binding>
    </basicHttpBinding>
</bindings>
<services>
    <service behaviorConfiguration="MyServiceBehavior" name="MyService">
        <endpoint 
            binding="basicHttpBinding" 
            bindingConfiguration="MyBasicHttpBinding"
            name="basicEndPoint"    
            contract="IMyService" 
        />
</service>

Also, make sure the directory Authentication Methods in IIS to Enable Anonymous access