I'm interested to know what methods people use to secure their webservices from unauthorized web service consumers.
I usually require either a user id/password to be sent each time, or return a token from the first authenticated connection that can be used subsequently.
Nothing fancy. Pretty similar to standard web app login.
I've used both SOAP headers and method parameters to pass user credentials -- .NET makes using the SOAP headers pretty easy, but I had issues with this using Java (several months back). I also do some IP-based filtering if the service is not intended for client (browser) use, but rather from backend web servers. Public, browser consumable web services are often protected by session cookies -- i.e, requires a valid logon to the web site, then the standard session authentication mechanism is used for requests via AJAX to web services.
There is a protocol specifically for web services security WS-Security. I've used parts of it in the past but at the time there was not a lot of support for it in .Net so it was a lot of work.
Currently with .Net I use SOAP Extension Headers. I have one web service call to authenticate and get a session token and then include that token in a SOAP header for every subsequent call, somewhat similar to this example. Of course all the request must travel over TLS to keep them from being compromised.
You can use network appliances such as IBM's DataPower or Vordel if you don't want to handle in your own application.