I think you need to drop the <security>
element and then change the httpTransport element to httpsTransport as shown in the following example:
<system.serviceModel>
<bindings>
<customBinding>
<binding name="RawReceiveCapable">
<webMessageEncoding webContentTypeMapperType="SmsService.RawContentTypeMapper, SmsService, Version=1.0.0.0, Culture=neutral, PublicKeyToken=null" />
<httpsTransport authenticationScheme="Basic" manualAddressing="true" maxReceivedMessageSize="524288000" transferMode="Streamed" />
</binding>
</customBinding>
</bindings>
The following link might be helpful: http://msdn.microsoft.com/en-us/library/ms731818.aspx